Canada has announced retaliatory tariffs on around $20 billion worth of US imports, matching the latest duties imposed by the administration of US President Donald Trump as tensions between the two long-standing allies continue to escalate.
The counter-tariffs, which will take effect on Sept 8, will impose duties of 15%, 25% and 50% on about 700 products imported from the United States, according to the Canadian government.
The move follows Washington’s decision to impose new 50% tariffs on around $20 billion worth of Canadian imports. The US measures came into force on Saturday after trade negotiations between the two countries broke down.
Canada’s Finance Minister François-Philippe Champagne said the measures were designed to protect Canadian workers, farmers, families and businesses, while matching the US tariffs on a dollar-for-dollar and rate-for-rate basis.
Under the new measures, Canada will impose 50% tariffs on products including steel, aluminium, furniture and clothing. Duties of 25% will apply to items such as cheese, appliances and certain seafood, while electronics and tools will face 15% tariffs.
The Canadian tariff list also includes prepared foods, perfumes, toiletries, plastics, lumber, wood pulp, paper products and carpets. Industrial goods such as machinery, electrical equipment, iron and steel products, rail engines, motorcycles, furniture and gaming equipment are also included.
Industry Minister Melanie Joly said the tariffs were primarily intended to shield Canadian companies from the impact of US trade measures, while also applying political pressure ahead of the US midterm elections on Nov 3.
She said the government had taken a strategic approach in selecting products, including goods linked to specific US states, as part of its wider effort to pressure Washington.
Alongside the tariffs, Ottawa unveiled a C$7.5 billion support package aimed at helping businesses and workers affected by the escalating trade dispute. The measures include assistance for small and medium-sized companies, funding to ease cash-flow pressures and support for workers facing risks linked to the new tariffs.
The Business Development Bank of Canada will also provide interest-free loans of between C$2.5 million and C$5 million to affected businesses. Companies will not be required to begin repayments for 36 months, extending the period into the final years of the current Trump administration.
The latest tit-for-tat measures mark another deterioration in trade relations between Canada and the US, with businesses in several sectors now facing greater uncertainty as both governments continue to escalate their tariff measures.
