Canada announces 'dollar-for-dollar' retaliatory tariffs on US as high as 50%

Canada has retaliated against the United States with counter-tariffs of up to 50% on a range of American goods, totalling nearly C$28 billion ($20 billion; £15 billion). These tariffs will be imposed on products such as steel, furniture, tuna, and cotton T-shirts, in response to US tariffs that Canada imposed on Canadian goods following the collapse of trade talks last week.

Finance Minister François-Philippe Champagne stated that Canada's response is proportionate and strategic, emphasizing that these measures are necessary to support Canadian workers, businesses, and communities. Champagne also announced C$7.5 billion in additional support for businesses and workers affected by US tariffs. The list of targeted products aims to mirror the US-imposed tariffs on Canadian goods.

This escalation in trade tensions is expected to have significant consequences for both countries' economies, with increased costs for businesses and potentially higher prices for consumers. Some observers question why trade talks broke down, while opposition figures demand the release of the full draft deal text. The White House has accused Canada of making unreasonable demands and rejecting partnership, while US President Trump has suggested changing the name of Lake Ontario to Lake America.

Meanwhile, Canadian Prime Minister Mark Carney accused Trump of wanting to destroy Canadian industries. While some officials expressed a desire to resume negotiations, the escalating trade war poses a threat to the USMCA, a North American free trade agreement between Canada, the US, and Mexico.