Canada to hit back 'dollar-for-dollar' in trade war after Trump’s 50 per cent levy

Canada will retaliate against the United States in a dollar-for-dollar trade war after the US imposed 50% tariffs on $20 billion worth of Canadian goods, according to Prime Minister Mark Carney. The retaliatory tariffs will target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, and more.

The new tariffs, set to take effect on September 8, affect about 5% of Canada's exports to the US. Canadian negotiators had hoped to resolve the trade talks during three days of intense negotiations, but the discussions ultimately failed, with Carney accusing the US of presenting "uneconomic, unfair" demands and violating Canadian sovereignty, French language, and Quebec culture.

The US Trade Representative, Jamieson Greer, maintains that Canada made new demands and abandoned previous commitments during the negotiations. Canada remains the largest foreign supplier of crude oil and petroleum products to the US, but the new tariffs will exacerbate existing pressures on the economy, particularly for vulnerable industries such as machinery, electronics, plastics and rubber, furniture, wood, paper, chemicals, and cosmetics.