Canada moved Tuesday to answer Washington’s latest trade action, announcing retaliatory tariffs of as much as 50% on roughly $20 billion worth of American goods. The measures are designed to mirror the Trump administration’s newly unveiled import duties on products from Canada.
“Today, I’m announcing Canada will match the U.S. tariffs dollar for dollar, up to 50% on $27.6 billion of imports from the United States of America,” Canadian Minister of Finance and National Revenue François-Philippe Champagne said during a news conference outlining the response. “For each product, our tariff would match the U.S. tariff on the same type of good.”
The total value, stated in Canadian dollars, is equal to about $20 billion in U.S. currency. Ottawa said the counter-tariffs will target many of the same sectors hit by the Trump administration’s measures, including steel, dairy products, home appliances, farm equipment, pulp and paper, and electronics.
Canada’s new tariffs on U.S. imports are scheduled to take effect on Sept. 8.
Alongside the tariff package, Canadian officials introduced support measures for companies and workers expected to feel the impact of the U.S. duties. The assistance includes loan programs for businesses and income support for affected employees.
The escalating dispute places renewed strain on one of the world’s most important trade partnerships. The duties are expected to reach beyond heavy industry and into consumer goods, potentially affecting items such as seafood, cheese, clothing, cosmetics and toilet paper. Canadian officials said Monday the response is intended to shield domestic businesses and workers from the fallout.
Ottawa’s move follows the Trump administration’s decision over the weekend to impose 50% tariffs on Canadian goods after trade talks between the two countries broke down. Canadian Prime Minister Mark Carney accused Washington of attempting to subordinate Canada, saying U.S. demands during the failed negotiations suggested Americans wanted to “destroy our major industries.”
Champagne said Tuesday that Canada’s broader strategy is to build resilience at home while expanding trade ties beyond the United States. He noted plans to meet with a trade official from India this week and emphasized that Canada is entering the trade fight from what he described as a strong fiscal position, citing the lowest net debt-to-GDP ratio in the G7 and a triple-A credit rating.
“Ultimately the terms proposed by the U.S. were uneconomic, unfair and ultimately, unacceptable,” Champagne said. “We stood up for our workers. We stood up for our businesses. We stood up for Canada.”
Canada’s tariff rates
Canada said it will impose tariffs of 15%, 25% and 50% on products that are targeted by the U.S.
The new U.S. 50% levies on Canadian goods were enacted under Section 338 of the Tariff Act of 1930, which grants the White House authority to impose duties on imports from a trade partner that is discriminating against U.S. commerce.
The U.S. products that Canada will target with new tariffs include:
- Fish imports like salmon and trout: 25% tariff
- Lobsters and mollusks like clams: 25% tariff
- Carpets and floor coverings: 25% tariff
- Appliances like stoves and air conditioners: 25% tariff
- Milk, cream and cheese: 50% tariff
- Perfume and other cosmetics: 50% tariff
- Toilet paper and facial tissue: 50% tariff
- Clothing like men’s and women’s coats: 50% tariff
- Video game consoles: 50% tariff
- Golf clubs and fishing rods: 50% tariff
- Steel products: 50% tariff
- Aluminum products: 50% tariff
Alex Sundby
contributed to this report.
