International
oi-Ashish Rana
Canada has announced its new tariffs worth C$27.6 billion (US$19.94 billion) on American goods in response to US’s latest 50 percent tariffs on Canadian products. The new tariffs will start apply from 8 September and it will cover around 700 US products. Canada also revealed C$7.5 billion support for businesses and workers that are going affect in the trade dispute.
Canada is imposing retaliatory tariffs worth C$27.6 billion (US$19.94 billion) on approximately 700 US products starting September 8, responding to recent US duties, and announced a C$7.5 billion support package for affected businesses and workers.
Canada To Impose Tariffs On 700 US Products
The counter-tariffs will range from 15% to 50%, depending on the product. Ottawa said the measures are designed to match the value of Washington’s latest duties dollar-for-dollar.
The move follows the collapse of Canada-US trade negotiations, after talks broke down over disagreements between the two governments. The latest US tariffs affect about US$20 billion worth of Canadian exports, equivalent to roughly 5.5% of Canada’s exports to the US.
Ottawa Announces C$7.5 Billion Support Package
Alongside the tariffs, the Canadian government announced C$7.5 billion in new and enhanced measures aimed at protecting companies and workers from the economic impact of the trade war.
The package includes assistance for small and medium-sized businesses, measures to improve companies’ cash flow and support for workers considered vulnerable to job losses or other disruptions.
The government said the measures are intended to help Canadian businesses and workers deal with “challenging times”.
Trump Threatens Higher Auto Tariffs
The dispute intensified further after US President Donald Trump threatened to raise tariffs on Canadian cars, trucks, auto parts and steel to 50% from 1 January, 2027. The existing tariff on Canadian-built vehicles remains at 25% after the latest trade negotiations failed to produce an agreement.
Ontario Premier Doug Ford has strongly criticised Trump’s tariff threats and previously warned that Canada could use electricity exports as a countermeasure. Ontario had earlier imposed a temporary 25% surcharge on electricity exports to three US states.
Trump has also renewed his criticism of Canadian Prime Minister Mark Carney and suggested renaming Lake Ontario “Lake America”, adding to the increasingly hostile rhetoric between the two countries.
What Happens Next In Canada-US Trade War?
The 8 September date is to give businesses a chance to prepare although the major dispute still remains unsolved. Now this high tariffs will increase costs and disrupt North American product supply chains. It will also add pressure on the industries for both the countries.
Oxford Economics estimates that the latest US measures will increase the effective tariff rate on Canadian exports from 5.1% to 6.9%, with manufacturers in Quebec, New Brunswick and Ontario expected to face some of the biggest effects.
The latest Canadian response raises the prospect of further escalation unless Ottawa and Washington return to negotiations.
