Canada slaps up to 50% in retaliatory tariffs on US goods

Canada has retaliated against the United States with up to 50 per cent tariffs on approximately US$20 billion (S$25.4 billion) worth of American goods, intensifying the ongoing trade dispute between the two nations. The move comes in response to similar tariffs imposed by the U.S. on roughly CA$27.6 billion (S$25.3 billion) of Canadian products.

According to CNBC, the new tariffs imposed by Canada will apply to over 700 U.S. goods, including dairy, seafood, appliances, wood and paper products, and clothing. The most substantial increase in tariffs is on American steel and aluminium, reaching around 50 per cent. These measures are set to take effect on September 8. In addition to the tariffs, Canada announced a CA$7.5 billion (S$6.87 billion) support package for its workers and businesses, as reported by the Department of Finance.

Prior to this announcement, Canada's Prime Minister Mark Carney had expressed dissatisfaction with the U.S.'s proposed terms, stating that they were unfair, uneconomic, and called into question the reliability of any deal. Carney also decided to suspend trade negotiations with the U.S. and recalled Canada's trade negotiators, emphasizing that Canada has valuable assets the world seeks and will not allow any nation to dictate its future.

U.S. President Donald Trump criticized Canada on social media, accusing it of "ripping off" the U.S. for decades and claiming that the U.S. has lost approximately US$60 billion annually due to the trade relationship. Trump even created a graphic showing a map of Lake Ontario with its name replaced by "Lake Ameria."