US President Donald Trump (left) and Canadian Prime Minister Mark Carney. [AFP]
US President Donald Trump (left) and Canadian Prime Minister Mark Carney. [AFP]

Canada announced Tuesday (local time) that it would impose retaliatory tariffs of up to 50 percent on roughly $20 billion worth of American goods, deepening a trade war between two close neighbors bound by decades of economic, social and cultural integration.

The Finance Ministry said it would apply tiered retaliatory tariffs of 15, 25 and 50 percent to approximately 700 categories of US products. The targeted imports amount to 27.6 billion Canadian dollars (about $20 billion).

The measures take effect Sept. 8, in direct response to Washington's decision to impose 50 percent tariffs on roughly $20 billion in Canadian goods beginning Saturday.

Ottawa said it was matching the US action "dollar for dollar, rate for rate."

Under the new levies, some American steel and aluminum products, furniture and clothing will face a 50 percent tariff. Home appliances, cheese and other dairy products, fish and seafood, and some steel and aluminum derivatives will be hit with 25 percent duties, while industrial tools and similar goods will face a 15 percent levy.

Canadian government officials said the aim of the measures was not to raise revenue but to protect Canadian businesses and reduce imports of American products.

Finance Minister François-Philippe Champagne said Canada did not choose the conflict but must respond when economic integration is used as a weapon rather than as the foundation of a mutually beneficial partnership. He described the situation as "an unprecedented challenge imposed on Canada."

The government also announced a 7.5 billion Canadian dollar ($5.4 billion) support package for businesses and workers hurt by the trade dispute. The package includes liquidity support for small and medium-sized enterprises, financial assistance for companies affected by the tariffs, and an expansion of employment insurance programs for workers in affected industries.

The retaliatory measures came after trade negotiations between the two countries broke down last week, prompting Washington to impose 50 percent tariffs on Canadian goods and reigniting bilateral trade tensions.

Prime Minister Mark Carney had earlier said Canada could not accept US demands because Washington was asking for too much while offering too little in return.


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