Canada announces 'dollar-for-dollar' retaliatory tariffs on US as high as 50%

ByNadine Yousif Senior Canada reporter.

Key points

• Still, in a series of Tuesday posts on Truth Social, Trump accused Canada of "ripping off" the US for decades and of charging American farmers steep tariffs.
• On Monday, Trump threatened to hike US tariffs on Canadian automobiles to 50% as of 1 January.
• After calling Trump a "loser" on Monday at a news conference, Ontario Premier Doug Ford acknowledged in an interview with CNN that "things obtained a little heated".
• President Claudia Sheinbaum had despatched her economy secretary, Marcelo Ebrard, to Washington for emergency discussions after trade negotiations collapsed with Canada.
• Canada published on Tuesday a list of around 700 US products that will be hit by its counter-tariffs.

Canada has confirmed counter-tariffs as high as 50% on a range of US goods in retaliation to the latest wave of levies on Canadian imports imposed by President Donald Trump last weekend.

In practice, the Canadian tariffs will apply to almost C$28bn ($20bn; £15bn) worth of American products, ranging from steel to furniture, fresh tuna and cotton T-shirts, office-holders confirmed on Tuesday.

Notably, the list of targeted products is designed to match Canadian goods hit by the US. The Canadian levies are set to come into effect on 8 September.

It is the latest escalation after US-Canada trade discussions collapsed late last week, with each side accusing the other of making last-minute demands that were unreasonable.

According to Finance Minister François-Philippe Champagne, canada's retaliation is in response to 50% tariffs imposed by the Trump administration on a range of Canadian goods after trade negotiations fell apart on Friday.

"Those tariffs will have real consequences for Canadian workers, businesses and communities across our nation, " he remarked. "Canada must respond." Champagne characterised Canada's retaliation as "proportionate" and "strategic".

He continued that Canada will additionally offer businesses and workers impacted by US tariffs an extra C$7.5bn for backing programmes designed to minimise job losses and keep firms afloat.

Placing taxes on trade between what are historically two of the world's closest trading partners will undoubtedly lead to pain on both sides of the border.

Supply chains which have been developed over decades are set to see rose trading costs due the latest tariff announcements produced from both the US and Canada, ultimately hitting businesses of all sizes and consumers through potentially higher rates. President Trump has yet to comment on the latest Canadian countermeasures.

"I deal with many countries, and Canada is easily the most difficult and unreasonable, " Trump wrote. "They feel entitled, but they are not a State, and will be entitled no longer!"

He additionally suggested that he will change the name of Lake Ontario, one of the Great Lakes on the US-Canada border, to Lake America, writing: "We don't expect to doing much business with Ontario any longer."

On Monday, Trump threatened to hike US tariffs on Canadian automobiles to 50% as of 1 January. Prime Minister Mark Carney responded by accusing Trump of wanting to "destroy" Canadian industries including the automobile manufacturing and steel and aluminum sectors.

Public rhetoric on both sides reached a fever pitch on Monday, but some authorities struck a more diplomatic tone on Tuesday with hopes that negotiations could be resumed.

"But I want to make a deal – a good deal for the American people, a good deal for Canadians, " Ford remarked.

In practice, the escalation additionally puts into question the future of a North American free trade pact between Canada, the US and Mexico called the USMCA.

How Canada could hit back to hurt the US economy – and Trump.

'Half my business will be gone' – firms in Canada and US fear trade war. Which US goods will be hit by tariffs?

For context, a 50% tariff on steel and aluminum products that were previously only subject to a 25% counter tariff.

In practice, a 50% tariff on various other goods including natural honey, furniture, clothing and apparel, makeup and perfume.

In practice, a 25% tariff on goods including appliances, dairy products, such as cheese, fish and seafood, and certain steel and aluminum derivative products.

Notably, a 15% tariff on certain types of tools and machinery, including forklifts and air conditioning machines.

For now, canada announces ' dollar-for-dollar' retaliatory tariffs on US as high as 50% remains the part of the story worth watching, and further updates are likely as more details are confirmed.