Canada unveils counter tariffs of 15% to 50% on US goods
Ottawa's retaliation takes effect on Sept 8, a date previously outlined by prime minister Mark Carney, and will see Canadian tariffs match US levels.
Ottawa unveiled counter tariffs ranging from 15% to 50% on US goods on Tuesday, stepping up the trade war between the historically close allies. The retaliatory measures will take effect on September 8, following the imposition of 50% duties on Canadian products by US President Donald Trump on Saturday. Prime Minister Mark Carney stated that Canada's duties will match the US levels, impacting industries such as steel, dairy, and electronics.
Canada has also announced a US$5.4 billion (C$7.5 billion) aid package to support impacted firms and workers. This unprecedented challenge was imposed by the US after trade negotiations collapsed at the last moment. The steep US tariffs hit about US$20 billion in Canadian goods, accounting for 5.5% of its exports to the US. Canada's response includes imposing duties on US steel and aluminium products, appliances, dairy products, and certain steel and aluminium derivative products, among others.
Analysts warn of further escalation, as Trump has threatened to double tariffs on Canadian autos, potentially raising them to 50% from the current 25%. Ontario Premier Doug Ford criticized Trump's auto tariff threat, vowing a surcharge on electricity exports to US states. Trade tensions between the two nations remain high, with the US being Canada's largest trading partner.
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