Canada Announces Retaliatory Tariffs On $20bn US Goods

Canada has announced retaliatory tariffs on about $20bn worth of United States goods, escalating the trade dispute between the two countries.

The Canadian government said on Tuesday that it would impose counter-tariffs worth C$27.6bn, equivalent to about US$20bn, on US imports.

The measures, which will take effect on September 8, will impose tariffs ranging from 15% to 50% on about 700 products, including steel, aluminium, furniture, clothing, dairy products, appliances, seafood, electronics and agricultural equipment.

Canada’s Finance Minister François-Philippe Champagne said the measures were designed to respond to the new US tariffs while protecting Canadian workers and businesses.

“Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses,” Champagne said.

The Canadian government also announced a C$7.5bn support package for businesses and workers affected by the escalating trade dispute. The package includes measures to support small and medium-sized businesses, provide cash-flow assistance and help workers facing tariff-related disruptions.

The move follows Washington’s decision to impose 50% tariffs on about US$20bn worth of Canadian imports, deepening tensions after trade negotiations between the two countries collapsed.

Canada’s latest measures are intended to match the US tariffs dollar-for-dollar and rate-for-rate, according to Canadian officials.

The latest development marks a further escalation in the trade war between the two North American neighbours, whose economies are deeply interconnected through manufacturing, agriculture, energy and other sectors.