Canada hits US goods with $20 billion retaliatory tariffs

Canada has announced retaliatory tariffs on around $20 billion worth of annual imports from the United States, matching Washington's latest duties and introducing a multi-billion-dollar support package for businesses and workers affected by the escalating trade dispute.The counter-tariffs on US goods will take effect on September 8 and impose duties of 15%, 25% and 50% on around 700 products imported from the United States, according to agency reports .
The move comes after US President Donald Trump's new 50% tariffs on $20 billion worth of Canadian imports took effect on Saturday following the collapse of trade talks between the two countries.The latest exchange of tariffs marks a further deterioration in relations between the longtime allies. Trump also threatened earlier on Tuesday to rename Lake Ontario, which lies between the two countries, “Lake America”.“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,” Canada's Finance Minister François-Philippe Champagne said.

Canada said retaliatory tariffs would be placed on $20 about billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply. The move came after the Trump administration… pic.twitter.com/5p7DOdikND

— The Associated Press (@AP) August 25, 2026

Meanwhile, the White House and the US Trade Representative did not immediately respond to requests for comment, according to media reports.
A Canadian government official said the country would impose 50% tariffs on steel, aluminum, furniture and clothing, while cheese, appliances and some seafood would face 25% duties. Electronics and tools would be subject to 15% tariffs.The US tariffs announced by Trump are relatively narrow, affecting around 5% of Canada's exports to the United States. However, trade analysts have warned that they could have significant effects on specific industries already facing difficulties, including wood products and kitchen cabinet manufacturers.
Canada's retaliatory tariffs, calculated using 2024 trade figures, cover goods accounting for nearly 4.5% of the country's imports from the United States.The Canadian measures also cover prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper products, carpets and clothing.Industrial goods including iron and steel, aluminum, hand tools and other metal products, machinery and electrical equipment are also included. The list further covers rail engines, motorcycles, furniture and gaming equipment, according to government documents.
Industry Minister Melanie Joly said the counter-tariffs were primarily intended to protect Canadian businesses while also creating political pressure ahead of the US midterm elections on November 3.“We need to make sure that the competitors don’t have access to the Canadian market in a better way than their own… products, and that’s why the retailers need to show that from Canada,” Joly said.She added that Canada was also targeting products linked to specific US states as part of what she described as a strategic effort to apply political pressure.Alongside the tariffs, Canada announced a C$7.5 billion package of measures to support small and medium-sized businesses, provide cash-flow assistance to companies and help workers at risk from the new duties.The Business Development Bank of Canada, a federal lender, will provide part of the support to affected businesses through interest-free loans ranging from C$2.5 million to C$5 million, according to media sources.Joly said companies receiving the assistance would not be required to begin repayments for 36 months, extending through the end of the Trump administration's current term.