Canada announces US$20 billion retaliatory tariffs on US goods, unveils support measures
The counter-tariffs take effect from Sep 8 and will impose duties ranging from 15 per cent to 50 per cent across 700 US products.
A Canadian flag flies on Parliament Hill in Ottawa on Aug 22, 2026. (File photo: AP/The Canadian Press/Patrick Doyle)
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OTTAWA: Canada on Tuesday (Aug 25) announced retaliatory tariffs on C$27.6 billion (US$19.94 billion) worth of United States goods, matching dollar-for-dollar new duties imposed by Washington, and unveiled financial support for Canadian businesses and workers caught in the escalating trade war.
The counter-tariffs take effect on US goods from Sep 8 and will impose duties of 15 per cent, 25 per cent and 50 per cent across 700 products imported from south of the border, a government statement said.
In terms of financial support for affected workers and industries, Canada announced a C$7.5 billion package of new and enhanced measures.
These include support for small and medium-sized businesses, a stream for funding cash flows of companies, and support for workers who could be at risk due to the new tariffs.
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The new measures aim to support workers and businesses during “challenging times”, Canada’s government said late Monday.
The new tariffs are designed to impact Canadian consumers and businesses minimally while still hitting the US, a Canadian government official said.
The 50 per cent tariffs are on important sectors such as steel, aluminium, furniture and clothing, they said.
The 25 per cent tariffs are on cheese, appliances and some seafood, while the 15 per cent tariffs will be on electronics and tools, the official added.
TIT-FOR-TAT TARIFFS
Fresh 50 per cent US tariffs took effect on a range of Canadian goods Saturday, after trade negotiations collapsed the prior day at the eleventh hour.
The duties impact some US$20 billion in goods, or about 5.5 per cent of Canadian exports to the United States, economists estimate.
On Monday, Trump additionally pledged to double tariffs on Canadian autos starting next year, up to 50 per cent from the current 25 per cent for non-US content.
Ontario Premier Doug Ford criticised Trump’s tariff threat on autos, saying he could “kiss my ass” and threatening an electricity export surcharge.
In an earlier phase of the dispute, Ontario imposed a temporary 25 per cent surcharge on electricity exports to three US states.
Trump has since lashed out at Ford online, warning of “far worse” consequences.
The new tit-for-tat tariffs mark a new low in the Canada-US relationship.
Trump has re-upped his inflammatory push for Canada to become the 51st US state by referring to Canadian Prime Minister Mark Carney as a “governor”.
On Tuesday, he said he was considering renaming Lake Ontario as “Lake America”, as he did last year with the Gulf of Mexico.
The latest tariffs Trump imposed will raise the US effective tariff rate on Canadian exports to 6.9 per cent from 5.1 per cent, Oxford Economics estimates.
Tariffs on plastics, electrical machinery, and wood and paper products contribute the most to the increase.
“Manufacturers in Quebec, New Brunswick, and Ontario will be affected the most,” Oxford Economics said.
Source: Agencies/co
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