Canada on Tuesday laid out a dollar-for-dollar counterstrike in its trade fight with the United States, announcing tariffs of up to 50 percent on billions of dollars of American goods after talks collapsed last week.
Finance Minister François-Philippe Champagne, joined by other cabinet ministers in Ottawa, said the measures would cover about C$28 billion worth of U.S. imports, or roughly $20 billion, and take effect September 8. Officials described the list as matching, product by product, the duties Washington imposed after Friday night’s breakdown. Steel and aluminum tariffs already in place will rise from 25 to 50 percent. Other U.S. goods, including furniture, clothing, honey, makeup, paper and smartphones, face 50 percent. Appliances, seafood and cheese are among items at 25 percent. A shorter list, including air conditioners and some machinery, is at 15 percent. Energy and potash were left off. Ottawa also announced a C$7.5 billion package of supports for workers and firms, including temporary employment-insurance changes.
The U.S. tariffs, imposed under a Depression-era statute after negotiators failed to close a deal, hit a range of Canadian exports at 50 percent. Prime Minister Mark Carney had already promised a reciprocal response. Champagne said the American terms were “uneconomic, unfair, and ultimately unacceptable,” and that they would have “real consequences for Canadian workers, businesses and communities.” “Canada must respond,” he said.
The White House said the United States had been prepared to offer Canada “the most preferential market access of any country on Earth,” and accused Ottawa of unreasonable demands. Trump, posting on Truth Social, called Canada “the most difficult and unreasonable” country he deals with and floated renaming Lake Ontario “Lake America.” He has also threatened to raise U.S. tariffs on Canadian automobiles to 50 percent as of January 1. Carney has accused Trump of trying to destroy Canadian auto, steel and aluminum industries.
The fight puts more strain on the North American trade pact among Canada, the United States and Mexico. Mexican President Claudia Sheinbaum sent her economy secretary to Washington after the Canada talks fell apart. Ontario Premier Doug Ford, who called Trump a “loser” on Monday, told CNN on Tuesday that things “got a little heated” but that he still wants a deal. Conservative Leader Pierre Poilievre asked Carney to recall Parliament and release the rejected draft. Business groups warned that both the tariffs and the support programs will be messy for companies to navigate.
