Canada slaps up to 50% in retaliatory tariffs on US goods

Canada has announced up to 50 per cent in counter-tariffs on about US$20 billion (S$25.4 billion) worth of U.S. goods, marking an escalation in the trade war between the once-close North American allies.

Canada's dollar-for-dollar retaliatory tariffs were precipitated by similar tariffs imposed by the U.S. against roughly CA$27.6 billion (S$25.3 billion) of Canadian goods.

Escalation

According to CNBC, Canada's new tariffs will encompass more than 700 U.S. goods.

It mirrors the size of America's import levies placed on Canadian wine, cement, hockey sticks and other goods.

Canada's counter tariffs range from 15 to 50 per cent, targeting U.S. dairy, seafood, appliances, wood and paper products, and clothes.

The increase in tariffs on American steel and aluminium is the most significant, reaching about 50 per cent.

Canada's new tariffs on American imports will kick in on Sep. 8.

Alongside the tariffs, Canada also announced a CA$7.5 billion (S$6.87 billion) support package for Canadian workers and businesses, the country's Department of Finance said in a press release.

Canada previously recalled negotiators

Before Canada's Aug. 25 tit-for-tat tariff announcement, its Prime Minister Mark Carney released a statement on Aug. 21, noting that Canada's trade negotiators worked in the context that "America has changed".

"Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal," Carney said.

He also announced that Canada has decided to suspend trade negotiations with the U.S. and recalled its negotiators.

"Canada has what the world wants. And we will not allow any nation to determine our future. We will set our own course to keep building Canada strong for all," Carney concluded.

Canada "ripping off" U.S. "for decades", Trump says

U.S. President Donald Trump lashed out at Canada on Truth Social, writing that Canada has been "ripping off" the U.S. "for decades".

He also claimed that the U.S. has lost about "60 billion dollars a year with Canada" on average.

Trump also posted a graphic which showed a map of Lake Ontario with its name crossed out and replaced by "Lake Ameria".

Lake Ontario is a lake split by the border of Canada and the U.S.