Canada Fires Back at Trump, Imposes $20bn Tariffs on US Goods
Canada has retaliated against the United States with tariffs worth about C$27.6 billion ($19.9 billion) on American goods.
The move has deepened tensions between the two neighbouring countries and raised fresh concerns about their economic relationship.
Ottawa said the new tariffs would match the duties imposed by Washington, with rates ranging from 15% to 50%.
The tariffs, which take effect September 8, will cover more than 700 categories of American products.
Affected goods include steel, aluminium, dairy products, appliances, farm equipment, furniture, clothing, seafood, electronics, pulp and paper.
Finance Minister François-Philippe Champagne said Canada negotiated with Washington in good faith but rejected demands considered too costly.
He said Canada did not choose the trade conflict but needed to protect its workers, farmers and businesses.
The retaliation follows Washington’s decision to impose 50% tariffs on about C$27.6 billion worth of Canadian goods.
Those American tariffs took effect on August 22 after trade negotiations between the two countries collapsed.
The latest measures have heightened concerns for businesses operating across the highly integrated Canadian and American economies.
Their supply chains are closely connected across automobile manufacturing, agriculture, energy and other major industries.
Companies on both sides could now face higher costs, disrupted supplies and greater uncertainty over future trade.
Canadian Prime Minister Mark Carney defended the retaliation, saying Ottawa must protect Canada’s economic interests while pursuing negotiations.
Trump has also threatened 50% tariffs on Canadian cars, trucks and auto parts from January 1, 2027.
Ottawa has responded with a C$7.5 billion support package for workers and businesses affected by the tariffs.
The package includes assistance for small businesses, companies facing cash-flow problems and workers affected by the dispute.
Canadian officials acknowledged that the measures could raise costs for some businesses and consumers.
However, Ottawa said protecting domestic industries remained its priority as the trade confrontation continued.
The latest dispute follows previous tariff battles involving steel, aluminium, automobiles and several other categories of goods.
Businesses are increasingly worried that prolonged restrictions could disrupt cross-border supply chains and push prices higher.
With both governments maintaining their positions, fears are growing that the confrontation could become a wider trade war.
Such an outcome could further damage one of the world’s most closely connected economic partnerships.
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