Canada yesterday announced counter-tariffs on US goods ranging between 15 percent and 50 percent, intensifying the trade war between the historically close allies.
Ottawa’s retaliation takes effect September 8, a timeframe earlier outlined by Prime Minister Mark Carney after US President Trump’s 50-percent duties on Canadian products came into place Saturday.
In detailing Ottawa’s response, officials said that its duties will match US levels. These impact industries like steel, dairy and electronics.
Canada’s government also announced a $5.4 billion (CA$7.5 billion) aid package for impacted firms and workers.
“This is an unprecedented challenge imposed on Canada. But Canada will meet the moment,” Canada’s Finance Minister Francois-Philippe Champagne said.
The steep US tariffs hit about $20 billion in Canadian goods -- about 5.5 percent of its exports to the US -- after trade negotiations collapsed at the eleventh hour.
Under Canada’s planned response, US steel and aluminum products previously subject to a 25-percent duty will soon face 50-percent tariffs.
Goods facing 25-percent tariffs will include appliances, dairy products like cheese, as well as certain steel and aluminum derivative products.
A small category will see a 15-percent duty, including electric equipment and tools.
But analysts warn of tit-for-tat escalation.
Already, Trump pledged to double tariffs on Canadian autos starting next year, up to 50 percent from the current 25 percent for non-US content. Ontario Premier Doug Ford criticized Trump’s threat on autos, saying he could “kiss my ass” and threatening an electricity export surcharge.