Canada on Tuesday announced retaliatory tariffs on around $20 billion worth of annual US imports, matching Washington’s latest duties dollar-for-dollar, while unveiling a C$7.5 billion support package for businesses and workers affected by the escalating trade dispute.
The counter-tariffs, which will come into effect on September 8, will impose duties of 15 per cent, 25 per cent and 50 per cent on around 700 US products, according to the Canadian government.
The move follows the implementation of US President Donald Trump’s new 50 per cent tariffs on around $20 billion of Canadian imports on Saturday after trade negotiations between the two countries broke down.
Canada’s Finance Minister François-Philippe Champagne said the measures were aimed at protecting Canadian workers, farmers, families and businesses.
“Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses,” Champagne said.
The retaliatory duties include 50 per cent tariffs on US steel, aluminium, furniture and clothing, 25 per cent on cheese, appliances and some seafood, and 15 per cent on electronics and tools, a Canadian government official said.
The tariff list also covers prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper products, carpets, machinery, electrical equipment, rail engines, motorcycles, furniture and gaming equipment.
Canada’s Industry Minister Melanie Joly said the measures were primarily intended to protect domestic businesses while also applying political pressure on the US ahead of its November 3 midterm elections.
“We need to make sure that the competitors don’t have access to the Canadian market in a better way than their own… products,” Joly said.
“Second, we’re also targeting products that will target states in the US and so we’re being wise and strategic to put political pressure,” she added.
The Canadian tariffs, calculated using 2024 trade data, cover goods accounting for nearly 4.5 per cent of the country’s imports from the US.
Canada also announced a C$7.5 billion package aimed at helping businesses maintain cash flow and supporting workers facing the impact of the tariffs.
The Business Development Bank of Canada will provide interest-free loans ranging between C$2.5 million and C$5 million to affected businesses.
Joly said companies would not be required to begin repayments for 36 months, extending through the end of Trump’s current presidential term.
The latest measures mark a further deterioration in relations between the two longtime trading partners, with the new tariffs expected to have concentrated effects on sectors already facing difficulties, including wood products and kitchen cabinet manufacturing.
