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Canada has announced retaliatory tariffs of up to 50 per cent on $20bn worth of US imports a day after Donald Trump said he would raise duties on Canadian cars, in the latest salvo of an escalating trade war between the two neighbours.
Finance minister François-Philippe Champagne on Tuesday issued a 99-page list of hundreds of US goods that will face increased levies in Canada from September 8, including steel, dairy products and agricultural equipment.
“When the US asked too much and offered too little, we chose to stand up for Canadians,” said Champagne, referring to the trade talks that collapsed on Friday.
The move by Canada follows months of tortured trade talks between Washington and Ottawa, and comes as Trump steps up rhetorical attacks on the US’s northern neighbour.
But the trade tensions come at a perilous moment for the US economy, with the Trump administration battling stubborn inflation and increasing voter unhappiness over its handling of the economy weeks before crucial midterm elections.
Canada will impose counter-tariffs of 15, 25 or 50 per cent on US products, matching the rates applied to the same categories of Canadian exports by Washington.
Ottawa also announced a new $5.5bn package to bail out Canadian businesses and workers hurt by Trump’s barrage of levies.
“Our dollar-for-dollar, rate-for-rate counter-tariffs as well as a multibillion-dollar support package, will protect workers, farmers, families and businesses as we build a stronger, more resilient, and more diversified Canadian economy,” Champagne said.
In a press conference on Tuesday, industry minister Mélanie Joly said the federal government would be “flexible and adaptable” to the needs of Canadian businesses.
She also urged Canadians to pitch in by supporting local businesses that will bear the brunt of these latest US measures.
“When you choose a Canadian product, you’re not only putting pressure on the US, you’re protecting Canadian jobs,” she said.
Trump launched tariffs targeting $20bn worth of Canadian goods that went into effect on Saturday after Canada’s Prime Minister Mark Carney suspended trade talks with the US late the previous night.
On Monday, the US president said he would increase tariffs on Canadian cars and automotive parts beginning on January 1, and on Tuesday he threatened to rename Lake Ontario “Lake America”.
