Canada’s federal government has unveiled retaliatory tariffs on $20 billion U.S. of American goods.
The new tariffs come as Ottawa matches dollar-for-dollar the 50% duties imposed on Canadian goods by U.S. President Donald Trump and his administration.
Canada’s new tariffs cover more than 700 U.S. goods with counter tariffs ranging from 15% to 50% applied to imports from the U.S. such as cheese, seafood, appliances, and clothes.
Among the most significant are 50% tariffs on American steel and aluminum, doubling the current Canadian rate.
The duties on metal and wood products were chosen to respond to previously imposed U.S. tariffs on steel, aluminum, and lumber products from Canada.
The new tariffs on American imports are set to take effect on Sept. 8 of this year.
The government of Prime Minister Mark Carney also unveiled an additional $7.5 billion U.S. package to support Canadian businesses and workers being harmed by U.S. tariffs.
The U.S. and Canada are now mired in an all-out trade war after negotiations aimed at reaching a new trade pact between the two countries broke down on Aug. 22.
Economists say the tit-for-tat tariffs will lead to high costs for consumers and harm businesses on both sides of the border.
Japanese automaker Honda Motor Co. (HMC) said on Aug. 25 that it is unlikely to build a new manufacturing plant in North America until there is a trade truce between the U.S. and Canada.
