Canada slaps retaliatory tariffs on US goods worth US$20 billion as trade war intensifies

Canada has intensified its trade war with the United States by announcing counter-tariffs on a range of U.S. goods. Effective September 8, these retaliatory tariffs will impose duties between 15 and 50 percent on various products, mirroring the levels previously set by the U.S.

The targeted industries include steel, dairy, and electronics. Specific items affected by the new tariffs include frozen and fresh fish, consumer goods like dishwashers and washing machines, and industrial products such as railway construction materials. This move comes after Prime Minister Mark Carney outlined the timeframe for retaliation following the U.S. President Donald Trump's imposition of 50 percent duties.

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This is an unprecedented challenge imposed on Canada. But Canada will meet the moment. I think what Canadians can see this morning is that we stand united.

In response to the escalating trade conflict, Canada's Finance Minister Francois-Philippe Champagne stated that the nation "will meet the moment" and "stand united." The government also announced a significant aid package totaling C$7.5 billion (US$5.4 billion) to support Canadian firms and workers impacted by the trade dispute. Industry Minister Melanie Joly echoed the call for Canadians to support domestic businesses and pledged to work with new allies and trading partners.

The tit-for-tat measures come after trade negotiations collapsed, with Trump's latest tariffs affecting approximately US$20 billion in Canadian goods. Analysts warn of further escalation, especially as Trump has threatened to double tariffs on Canadian autos. The U.S. tariffs do not exempt products under the US-Mexico-Canada free trade agreement, raising the effective U.S. tariff rate on Canadian exports. Manufacturers in Quebec, New Brunswick, and Ontario are expected to be the most affected.

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