Ottawa says the retaliatory measures, ranging from 15% to 50%, are aimed at protecting Canadian businesses and workers as tensions between the two neighbours escalate.
Canada has announced a new round of counter-tariffs on goods imported from the United States, deepening the growing trade dispute between the two North American neighbours.
The tariffs, which range from 15% to 50%, are expected to take effect on September 8, following the introduction of new 50% US duties on Canadian goods.
Canadian officials said the measures are designed to match the tariffs imposed by Washington and will affect several sectors, including steel, dairy, electronics and consumer products.
Among the products targeted are fresh and frozen fish, dishwashers, washing machines and railway construction materials.
The Canadian government has also announced a $5.4 billion (CA$7.5 billion) support package to assist businesses and workers affected by the trade measures.
Finance Minister Francois-Philippe Champagne said Canada was facing an unprecedented challenge but would respond in a targeted and strategic manner.
Steel, Appliances Face Higher Duties
Under the new measures, US steel and aluminium products that previously attracted a 25% tariff will face duties of up to 50%.
Other products, including certain appliances, dairy products such as cheese, and some steel and aluminium derivatives, will face 25% tariffs.
A smaller group of goods, including electrical equipment and tools, will attract a 15% tariff.
Together, the affected products account for about 7.3% of Canada’s imports from the US, based on 2024 trade figures.
Industry Minister Melanie Joly has urged Canadians to support local businesses while promising to strengthen trade relationships with other countries.
She also warned that Canada would respond if US President Donald Trump follows through with plans to raise tariffs on Canadian automobiles to 50%.
Trump Threatens Fresh Tariff Hike
The latest development comes after Trump threatened to double tariffs on Canadian automobiles next year, raising them from the current 25% to 50% on non-US content.
Ontario Premier Doug Ford strongly criticised the threat and warned that Canada could respond with additional measures, including a possible surcharge on electricity exports.
Trump subsequently hit back at Ford and warned of “far worse” consequences.
The US president has also continued his controversial push for Canada to become the 51st US state, referring to Prime Minister Mark Carney as a “governor”.
Trade War Raises Economic Concerns
The latest US tariffs have affected about $20 billion worth of Canadian goods, representing roughly 5.5% of Canada’s exports to the United States.
Analysts have warned that the tit-for-tat measures could escalate further, increasing costs for businesses and consumers in both countries.
Oxford Economics estimates that the latest US tariffs have raised the effective tariff rate on Canadian exports from 5.1% to 6.9%.
Manufacturers in Quebec, New Brunswick and Ontario are expected to feel some of the biggest effects.
Canada and the US remain deeply connected economically, with the United States accounting for about 70% of Canada’s total exports.
Canada-US Tensions Continue To Rise
The dispute has also moved beyond tariffs, with Carney accusing US negotiators of making unacceptable demands concerning Canada’s trade relationships with other countries, as well as French-language and Quebec cultural issues.
Trump has rejected the accusations, insisting that Washington would not interfere with Canadians speaking French.
With negotiations failing to produce a deal, both countries are now preparing for further economic pressure as the latest round of tariffs takes effect.
The escalating trade war could put additional pressure on businesses on both sides of the border, while raising fresh concerns about prices, jobs and economic growth.
