Canada Hits Back With Tariffs on $20 Billion of US Goods

Canada has imposed retaliatory tariffs on approximately $20 billion worth of American goods, matching the duties recently introduced by Washington. The counter-tariffs, which take effect on September 8, apply rates of 15%, 25%, and 50% across roughly 700 products imported from the United States.

The move follows the collapse of talks between the two nations and comes after the U.S. introduced new 50% tariffs on Canadian imports. The escalating dispute marks a fresh low in relations between the longtime allies.

Finance Minister François-Philippe Champagne said the response is designed to protect Canadian workers, farmers, families, and businesses. The government has also announced a C$7.5 billion support package, which includes funding for small and medium-sized enterprises and assistance for workers affected by the tariffs.

The Business Development Bank of Canada will offer interest-free loans ranging from C$2.5 million to C$5 million to impacted companies. Industry Minister Melanie Joly stated that repayments will be deferred for 36 months.

The tariff list includes 50% duties on steel, aluminum, furniture, and clothing; 25% duties on cheese, appliances, and some seafood; and 15% duties on electronics and tools. Other targeted goods include prepared foods, plastics, lumber, paper products, machinery, and vehicles.

Joly noted that the counter-tariffs are aimed at protecting Canadian businesses while also applying political pressure in the U.S. ahead of the November midterm elections. The measures cover goods representing nearly 4.5% of Canada's imports from the United States, based on 2024 trade figures.