Canada announced retaliatory tariffs on C$27.6 billion ($25.3 billion) worth of US goods, matching dollar-for-dollar new duties imposed by Washington, with rates ranging from 15% to 50% across 700 products. The counter-tariffs take effect September 8 and target steel, aluminum, furniture, clothing, cheese, appliances, electronics and tools.
The escalation follows US tariffs of 50% on C$27.6 billion of Canadian imports that took effect August 22 after trade talks collapsed. Canadian Prime Minister Mark Carney and Finance Minister François-Philippe Champagne said the measures protect workers, farmers, families and businesses. A C$7.5 billion support package was also unveiled for affected industries and workers.
The tit-for-tat tariffs raise doubts over the future of the USMCA trade pact between Canada, the US and Mexico. Mexico has sent its economy secretary to Washington for emergency talks after negotiations with Canada broke down. Ontario Premier Doug Ford acknowledged tensions have run high but expressed willingness to reach a deal benefiting both nations.
President Trump has not commented directly on the latest Canadian countermeasures but previously accused Canada of being difficult and unreasonable. He threatened to raise US auto tariffs to 50% by January and suggested renaming Lake Ontario to Lake America. Some officials struck a diplomatic tone on Tuesday, hoping talks can resume.