Canada imposes retaliatory tariffs on 20 billion of U.S. goods as trade war escalates

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3 days · 4 summary articles
Canada announced retaliatory tariffs on about $20 billion worth of U.S. goods on Tuesday, escalating a trade war with the United States after negotiations collapsed over the weekend. The measures, effective Sept. 8, will impose duties of 15%, 25% and 50% on more than 700 American products, including steel, aluminum, furniture, clothing, dairy, appliances, seafood, cosmetics and toilet paper, according to Canadian officials .
Finance Minister François-Philippe Champagne said the tariffs are “proportionate, targeted and strategic,” designed to “match dollar for dollar, rate for rate” against President Donald Trump’s tariff agenda. The 50% levies will apply to steel, aluminum, furniture and clothing, while 25% duties will target dairy, appliances, cheese and fish. A 15% rate will cover other products, including rubber molds and machinery parts .
Canada also unveiled a C$7.5 billion ($5.4 billion) support package for workers and businesses affected by the dispute. Champagne said the measures aim to protect Canadian industry and “level the playing field,” not to collect revenue .
The retaliation follows Trump’s 50% tariffs on Canadian goods, which took effect Saturday. Prime Minister Mark Carney accused Washington of seeking to “destroy our major industries” and said the U.S. demands during failed talks showed an intent to subordinate Canada .
Trump intensified the confrontation on Tuesday, saying the U.S. was giving “serious consideration” to renaming Lake Ontario “Lake America” because Washington does not expect to do much business with Ontario going forward . He also threatened new 50% tariffs on Canadian vehicles, auto parts and steel, while Carney said U.S. trade demands sought to undermine Canada’s key sectors .
Canada’s existing 25% tariff on U.S.-made cars will remain in place. Officials said the new measures are intended to reduce U.S. imports and protect domestic companies, with steel imports already down 30% since Canada imposed a 25% tariff earlier .
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