Canada Unveils Retaliatory Tariffs on $20 Billion in US Goods

Canada's government on Tuesday announced retaliatory tariffs on $20 billion worth of U.S. exports, striking back at President Donald Trump's latest round of trade levies.

The new duties, ranging from 15% to 50%, will take effect September 8 and cover more than 800 product categories, according to Canada's Finance Ministry. The measures target "sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs," the ministry said.

Goods facing the steepest 50% duties include steel and aluminum products previously subject to a 25% counter-tariff, along with furniture and clothing. Dairy, appliances, cheese and fish will face 25% duties, while a 15% rate will apply to items including rubber molds and machinery parts. Existing counter-tariffs on automobiles remain in place.

"We stand united in fighting for Canada," Finance Minister François-Philippe Champagne said in a statement, adding that the response was tailored to "match the American tariff on the same type of Canadian good."

The announcement follows the United States' imposition of new 50% tariffs on numerous Canadian products, which took effect early Saturday after weeks of negotiations collapsed. Prime Minister Mark Carney had pledged to strike back "dollar for dollar," saying he called off a deal Friday night after Washington proposed terms he called "unfair" and "uneconomic."

U.S. Trade Representative Jamieson Greer disputed that account, telling CNBC on Monday that Washington had offered to cut steel, aluminum and auto tariffs but that "they simply wanted more."

The trade dispute has been accompanied by escalating rhetoric between Trump and Canadian officials. Ontario Premier Doug Ford said Trump could "kiss my ass," prompting Trump to call him a source of "bluster" and threaten a second wave of 50% tariffs on Canadian autos and steel. Trump also floated renaming Lake Ontario "Lake America," which Canadian Industry Minister Mélanie Joly dismissed as "shenanigans," saying, "We'll always call it Lake Ontario."

Joly said she has been in regular contact with the Canadian divisions of Honda, Ford Motor and Toyota, calling the preservation of Ontario's auto industry "a key consideration for this government."