Canada Hits Back With Dollar-for-Dollar Tariffs on US Goods
Canada announces retaliatory tariffs on C$27.6 billion of US goods, effective September 8, and a C$7.5 billion support package for affected workers and industries.
Canada has announced retaliatory tariffs on C$27.6 billion (approximately $19.94 billion) worth of American goods, a direct response to the new duties imposed by Washington. The counter-measures, which take effect on September 8, will apply duties of 15%, 25%, and 50% across 700 products imported from the United States.
The move comes after talks between the two countries to avert the escalating trade conflict collapsed. New 50% tariffs on $20 billion of Canadian imports took effect on Saturday, prompting Ottawa's response.
In a statement, the Canadian government said the counter-tariffs are designed to minimize the impact on Canadian consumers and businesses while still exerting pressure on the US. The 50% duties target key sectors including steel, aluminum, furniture, and clothing. A 25% tariff will apply to cheese, appliances, and certain seafood, while a 15% duty will be levied on electronics and tools.
Alongside the tariffs, Canada unveiled a C$7.5 billion package of new and enhanced support measures. This includes assistance for small and medium-sized businesses, funding to support company cash flows, and aid for workers potentially at risk due to the new tariffs.
Finance Minister François-Philippe Champagne said the package would protect workers, farmers, families, and businesses. The tit-for-tat tariffs mark a significant deterioration in the Canada-US relationship, with both sides now engaged in a full-blown trade dispute.