Key facts
- Canada announced retaliatory tariffs on C$27.6 billion ($19.94 billion) of U.S. goods, matching Washington's duties.
- The new tariffs will range from 15% to 50% on approximately 700 products, effective September 8.
- A C$7.5 billion financial support package was unveiled for Canadian businesses and workers impacted by the trade war.
- The escalating trade dispute follows the collapse of trade talks and previous U.S. tariffs on Canadian imports.
Canada has announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of U.S. goods, matching the value of new duties imposed by Washington. These counter-tariffs, set to take effect on September 8, will apply rates of 15%, 25%, and 50% across approximately 700 products imported from the United States. The move escalates the trade war that began after trade talks between the two nations collapsed and the U.S. imposed its own tariffs.
In addition to the tariffs, Canada unveiled a C$7.5 billion package of new and enhanced financial support measures. This package aims to assist small and medium-sized businesses, provide funding for company cash flows, and support workers who may be at risk due to the new trade barriers. Canada's Finance Minister François-Philippe Champagne stated that the "dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses."
The U.S. tariffs, which took effect earlier, targeted about $20 billion of Canadian imports with a 50% duty. The new tit-for-tat measures mark a significant downturn in Canada-U.S. relations. A government official indicated that the tariffs are designed to minimize impact on Canadian consumers and businesses while still affecting the U.S. economy. Specific U.S. goods facing the 50% tariff include steel, aluminum, furniture, and clothing, while cheese, appliances, and some seafood will face 25% duties, and electronics and tools will see 15% tariffs.