Canada unveils retaliatory tariffs on hundreds of US goods

Canada has announced plans to impose tariffs on a broad spectrum of American products, including cosmetics, dairy items, wood products and outdoor equipment. The measures are designed to counter recent levies imposed by the United States on Canadian exports. Ottawa describes the action as a focused response to what it considers unfair trade practices. The new duties will take effect in the coming weeks and are intended to match the value of the US tariffs on a dollar-for-dollar basis.

The decision follows the collapse of trade negotiations last week. The US tariffs, which were applied under section 338 of the Tariff Act of 1930, took effect on Saturday. The White House cited discriminatory trade policies by Canada as the reason for the move, specifically referencing provincial bans on US alcohol. Canadian officials noted that these bans were implemented in protest against tariffs previously imposed on Canadian goods. Prime Minister Mark Carney had previously pledged a proportional response after approximately five per cent of Canadian exports to the US were targeted by the White House.

The Canadian retaliatory package covers C$27.6bn in imports and targets key sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper. The list includes more than 700 items, ranging from hockey sticks and ornamental fish to toilet paper and smoked lobster. Most of these goods will face tariffs of 25 per cent or 50 per cent. A smaller group of items, including air conditioning units and tool parts, will be subject to a lower rate of 15 per cent. The levies will apply only to goods originating from the United States and will become effective on 8 September.

Finance Minister François-Philippe Champagne stated that the country remained united in its stance against the US, asserting that Canada remained masters of its own home. Industry Minister Mélanie Joly encouraged businesses and consumers to purchase Canadian goods as part of a broader resistance movement in the ongoing trade dispute. The government also announced over C$7bn in support for businesses affected by the latest tariffs. This adds to more than C$20bn in support measures announced over the past 18 months.

The escalation means both nations have intensified their trade war, with potential costs reaching billions. Earlier in the week, President Donald Trump suggested he was seriously considering renaming Lake Ontario to Lake America. This remark echoed his previous decision to rename the Gulf of Mexico. Critics noted that the province of Ontario was named after the lake, not the reverse. Trump’s frustration with the province stems from his feud with Premier Doug Ford, who had previously used strong language against the US president and threatened to cut electricity and rare earth metal exports. Trump responded by calling Ford a flunky of Prime Minister Carney and warned that the consequences for Canada would be far worse if they did not fall in line. He also denied reports that his negotiators sought to weaken French language rules, dismissing them as lies made up by a weak and ineffective prime minister.