OTTAWA: The trade war between Canada and the United States escalated sharply today as the Canadian government announced extensive retaliatory tariffs of up to 50 percent on approximately $27.6 billion (US$20 billion) worth of American imports. The counter-measures come directly in response to Washington’s imposition of 50 percent duties on a wide range of Canadian exports, following the recent breakdown of cross-border trade negotiations.
Prime Minister Mark Carney stated that Canada would match the U.S. tariffs dollar for dollar to protect domestic workers and critical industries from unfair economic pressures. Scheduled to take effect on September 8, the retaliatory rates will be set at tiered levels of 15 percent, 25 percent, and 50 percent. The target list includes over 700 American products, spanning everyday consumer items like cheese, frozen fish, cosmetics, clothing, and smartphones, alongside industrial goods such as steel, aluminum, and major household appliances.
In addition to the reciprocal duties, Finance Minister François-Philippe Champagne unveiled a C$7.5 billion ($5.4 billion) federal support package aimed at shielding affected businesses and workers. The relief framework includes expanded employment insurance measures, financial assistance for impacted manufacturers, and dedicated funding for workforce retraining as supply chains on both sides of the border face growing strain.
