Canada has slammed between 15 and 50 per cent tariffs on a broad range of American goods, deepening an escalating trade war between the it’s neighbouring United States of America.
The Canadian government said the new duties would take effect September 8, following the introduction of fresh 50 percent US tariffs on Canadian products over the weekend.
The retaliatory measures will affect several major categories of American goods, including steel and aluminium, dairy products, electrical equipment, appliances, fish, industrial materials and other consumer products.
Ottawa said the measures were designed to match the level of US tariffs while remaining targeted and proportionate.
Announcing the measures on Tuesday, Canadian Finance Minister Francois-Philippe Champagne described the dispute as an unprecedented challenge for the country but said the government was prepared to defend Canadian economic interests.
“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. Canada must respond, and today we are, in a proportionate, targeted and strategic way.”
The government also announced a CA$7.5 billion –approximately $5.4 billion- support package for businesses and workers expected to be affected by the tariff war.
Industry Minister Melanie Joly urged Canadians to support domestic businesses and said Ottawa would intensify efforts to develop relationships with new trading partners as it seeks to reduce its dependence on the US market. Joly also warned that Canada would respond forcefully if Washington followed through on plans to raise tariffs on Canadian automobiles.
Under Canada’s retaliation, US steel and aluminium products that were previously subject to a 25 percent Canadian duty will face tariffs of up to 50 percent. Other American products, including household appliances, dairy products such as cheese, and certain steel and aluminium derivative products, will face 25 percent tariffs.
A smaller group of products, including certain electrical equipment and tools, will attract a 15 percent duty.
Canadian officials said the products covered by the measures represented about 7.3 percent of Canada’s imports from the United States based on 2024 trade figures.
The new measures are Ottawa’s direct response to US tariffs that have already affected approximately $20 billion worth of Canadian goods, representing about 5.5 percent of Canada’s exports to the United States.
The Canadian retaliation comes amid increasingly hostile exchanges between Prime Minister Mark Carney’s government and US President Donald Trump.
Trump had already threatened to double US tariffs on Canadian automobiles from the current 25 percent to 50 percent on non-US content, beginning next year.
The threat has provoked strong reactions in Canada, particularly from Ontario Premier Doug Ford, who criticised the US president’s tariff policy and warned that Ontario could impose a surcharge on electricity exports to the United States.
Ford’s remarks drew a sharp response from Trump, who threatened “far worse” consequences and again referred to Carney as a “governor” as part of his repeated campaign to portray Canada as a potential 51st US state.
Trump also reignited tensions Tuesday by saying he was considering renaming Lake Ontario “Lake America”, echoing his earlier move to rename the Gulf of Mexico the “Gulf of America”.
The increasingly personal exchanges have added a political dimension to what began as a dispute over trade and market access.
Carney said over the weekend that US negotiators had made additional demands at the last minute, including restrictions on Canada’s ability to negotiate trade agreements with other countries. He also alleged that American officials had made unacceptable demands concerning the French language and Quebec culture, a sensitive issue in Canada’s predominantly French-speaking province.
Trump rejected the allegation, saying he would not interfere with Canadians speaking French and accusing Carney of making the claim to secure political support at home.
The dispute comes against the backdrop of Canada’s heavy economic reliance on the United States.
The US remains Canada’s largest trading partner, with Canadian exports to the American market accounting for about 70 percent of the country’s total exports.
Canada is also the United States’ second-largest goods trading partner this year, behind Mexico.
