Canada has slapped retaliatory tariffs of up to 50% on a range of American goods, ramping up a trade spat. This move comes after the Trump administration's similar tariffs on Canadian imports took effect last weekend.
The plan targets nearly C$28 billion (about $20 billion) in U. S. products, including steel, furniture, fresh tuna, and cotton T-shirts. These tariffs kick in on September 8.
Finance Minister François-Philippe Champagne said the tariffs respond directly to the U. S.'s 50% tariffs on Canadian goods after trade talks broke down last week. Champagne called the counter-tariffs "proportionate" and "strategic." He warned that the tariffs would have significant consequences for Canadian workers and businesses.
Besides the tariffs, Canada is setting aside C$7.5 billion to help businesses and workers hit by the U. S. tariffs. The aid aims to prevent job losses and keep companies running.
These tariffs between close trading partners are likely to disrupt supply chains, raising costs for businesses and consumers. Most Canadians back their government's strong stance, though questions linger about why trade talks failed. The Conservative opposition wants the draft agreement with the U. S. released for clarity.
The White House criticized Canada's move, claiming the U. S. offered Canada "the most preferential market access of any country" during talks. The statement accused Canada of making unreasonable demands.
President Trump tweeted that Canada has been "ripping off" the U. S. for years, calling it the toughest trading partner. He threatened a 50% tariff on Canadian cars starting January 1, which Prime Minister Mark Carney slammed as an attempt to "destroy" key Canadian industries.
Tensions between officials have grown. Ontario Premier Doug Ford called Trump a "loser" but seeks a fair deal for both nations. Meanwhile, the future of the USMCA is uncertain as Mexico also enters emergency talks after Canada's talks collapsed.
Canada's list of nearly 900 U. S. products includes a 50% tariff on steel and aluminum, raised from a previous 25% counter-tariff. Other goods hit include honey, furniture, clothing, makeup, and appliances. A 25% tariff will also apply to certain dairy products and 15% on specific machinery.
As both nations brace for economic fallout, the potential for a prolonged trade war looms, worrying businesses on both sides. Consumers might face higher prices and disrupted supply chains as the trade relationship becomes more complex.
