Canada retaliates with 50% tariffs on US goods

Canada is striking back at the United States with new tariffs covering hundreds of American-made products, deepening a trade dispute that has intensified after negotiations between the two countries broke down.

Canada will impose duties of 15%, 25% and 50% on $20 billion worth of US goods starting September 8. The measures will cover 700 products, including appliances, electronics, tools, clothing, seafood, railway equipment and construction materials, matching US duties dollar for dollar.

The tariffs will affect only 7% of US exports to Canada.

Prime Minister Mark Carney’s government says the goal is to protect Canadian businesses from the growing pressure rather than generate additional tax revenue. Ottawa also plans financial assistance, including interest-free loans, for companies affected by the trade fight.

The move is also likely to add pressure on US politicians heading into November’s midterm elections.

However, analysts note that Canada’s tariffs on consumer goods like food and clothing could raise costs for Canadian shoppers. Economists say the country is likely to take a bigger hit from the trade fight because it relies more heavily on exports to the US.

Meanwhile, Canada will keep its 25% tariff on American vehicles for now. That decision could change if President Donald Trump follows through on his threat to raise US auto tariffs on Canadian vehicles and parts to 50%.

Carney and senior Trump administration officials have signaled a willingness to resume talks.