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

Canada has imposed retaliatory tariffs up to 50% on various US goods in response to recent US levies on Canadian imports, totaling nearly C$28 billion ($20 billion; £15 billion). The Canadian tariffs will target products like steel, furniture, fresh tuna, and cotton T-shirts, aimed at matching those hit by the US. Finance Minister François-Philippe Champagne stated that these measures are to counter 50% tariffs imposed by the US, particularly on Canadian goods following the collapse of trade talks.

Champagne described the retaliation as "proportionate" and "strategic," adding that Canada will provide C$7.5 billion for support programs to mitigate job losses and business stability. These actions may lead to increased costs for businesses and consumers across both nations due to disrupted supply chains. While Canadian public opinion largely supports the government's stance, questions remain about the collapse of trade talks, with the opposition calling for transparency.

The US has acknowledged its willingness to offer Canada preferential market access but accused Canada of unreasonable demands. President Donald Trump has further threatened additional tariff hikes, including on Canadian automobiles, and suggested renaming Lake Ontario to Lake America. The escalating rhetoric has raised concerns about the future of the USMCA, a North American free trade pact involving Canada, the US, and Mexico.