Canada announces retaliatory tariffs of up to 50% against the US
US President Donald Trump threatened to rename Lake Ontario as Lake America, as relations between the neighbors hit a new low.
Ottawa announced retaliatory tariffs on US goods ranging from 15 to 50 percent on August 26, escalating the trade war after US President Donald Trump imposed 50 percent duties on Canadian products. Prime Minister Mark Carney had previously warned of this response in September, citing Trump's imposition of the tariffs. The retaliatory tariffs align with US levels, affecting industries such as steel, dairy, and electronics, including frozen and fresh fish, consumer goods like dishwashers, and railway construction materials.
Canada's Finance Minister Francois-Philippe Champagne announced a US$5.4 billion aid package for firms and workers to combat the "unprecedented challenge." Industry Minister Melanie Joly called for Canadians to support local businesses and pledged to fight back against potential increases in US tariffs on Canadian autos. Trump has threatened to double tariffs on Canadian autos starting in 2027 and has accused Carney of attempting to make Canada the 51st US state.
The exchanges have raised concerns in the US, with some questioning the economic sense of the tariffs, while others trust Trump to secure a better deal. Trump has also threatened to rename Lake Ontario as "Lake America." The US is Canada's largest trading partner, with Canadian exports to the US accounting for 70% of its total.
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