Canada announces retaliatory tariffs on US up to 50%
Canada hits back at US tariffs with duties up to 50% on nearly C$28bn of American goods, taking effect on September 8.
Stock photo for illustration only, not from the actual event
- Canada announces counter-tariffs as high as 50% on roughly C$28bn worth of US products.
- The retaliatory duties are scheduled to take effect on September 8 following Trump administration levies.
- The Canadian government will provide an additional C$7.5bn to support affected businesses and workers.
- The ongoing trade dispute threatens the future of the North American USMCA trade pact.
Canada has unveiled counter-tariffs reaching up to 50% on a wide array of American goods in direct retaliation to the latest wave of import levies imposed by US President Donald Trump over the weekend. The announcement follows the collapse of trade negotiations late last week, during which both nations accused each other of presenting unreasonable demands at the eleventh hour.
Finance Minister François-Philippe Champagne announced that the Canadian measures will target nearly C$28bn worth of US products, equivalent to about $20bn or £15bn. Ranging from steel and furniture to fresh tuna and cotton T-shirts, the list comprises roughly 900 items carefully chosen to mirror the Canadian goods hit by Washington, with implementation officially set for September 8.
Stock photo for illustration only, not from the actual event
The specific tariff tiers outlined by Canadian officials include:
- A 50% tariff on steel and aluminum products previously subjected to a 25% counter-tariff.
- A 50% tariff on various goods including natural honey, furniture, apparel, makeup, and perfume.
- A 25% tariff on appliances such as dishwashers and washing machines, dairy products, seafood, and certain steel and aluminum derivatives.
- A 15% tariff on specific tools and machinery, including forklifts and air conditioning units.
Minister Champagne further stated that the government will allocate an additional C$7.5bn in support programs to assist businesses and workers impacted by the US tariffs, aiming to minimize job layoffs and keep enterprises afloat. This financial cushion comes as supply chains developed over decades face inflated trading costs that threaten companies and consumers alike.
The White House responded by stating that the US had offered Canada the most preferential market access of any nation, claiming that Ottawa opted for unreasonable demands and rejections instead of partnership. Meanwhile, President Trump took to Truth Social to accuse Canada of ripping off the US for decades and threatened to hike tariffs on Canadian automobiles to 50% starting January 1.
Stock photo for illustration only, not from the actual event
Stock photo for illustration only, not from the actual event
This sharp escalation in trade friction highlights the fragility of cross-border economic relations between two of the world's most integrated partners. By implementing severe 50% tariffs and threatening critical sectors like automotive and steel, both governments risk inflicting deep structural wounds on regional supply chains under the USMCA, ultimately forcing everyday consumers to bear the burden of higher retail prices.
Source: BBC World
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