Canada Hits Back At Trump With Up To 50% Tariffs On US Goods

Canada has announced fresh tariffs of between 15 and 50 per cent on a wide range of goods imported from the United States (US), escalating the trade dispute between the two neighbouring countries.

The new measures will come into effect on September 8.

Naija News reports that the actions came days after US President Donald Trump imposed 50 per cent tariffs on a number of Canadian products.

Canadian officials said the retaliatory duties were designed to match the tariffs imposed by Washington and would affect products ranging from steel and dairy goods to electronics and household appliances.

The list of affected goods also includes fresh and frozen fish, dishwashers, washing machines and railway construction materials.

Ottawa has also announced a $5.4 billion, or CA$7.5 billion, support package for businesses and workers expected to feel the impact of the escalating trade tensions.

“This is an unprecedented challenge imposed on Canada. But Canada will meet the moment,” Canada’s Finance Minister, Francois-Philippe Champagne, said.

“I think what Canadians can see this morning is that we stand united. Canada must respond, and today we are, in a proportionate, targeted and strategic way.”

Industry Minister Melanie Joly also urged Canadians to support local businesses, while saying the government would seek new trading partners to reduce its dependence on the United States.

Joly warned that Canada would respond if Trump went ahead with plans to increase US tariffs on Canadian automobiles to 50 per cent.

The latest US tariffs affect about $20 billion worth of Canadian goods, representing roughly 5.5 per cent of Canada’s exports to the United States.

Under Ottawa’s response, US steel and aluminium products that previously attracted a 25 per cent duty will now face tariffs of up to 50 per cent.

Other products, including household appliances, cheese, some dairy products and certain steel and aluminium derivatives, will attract a 25 per cent duty.

Some electrical equipment and tools will face a 15 per cent tariff.

Together, the affected products account for about 7.3 per cent of Canada’s imports from the US based on 2024 trade figures.

The escalating tariff battle has already sparked a war of words between Trump and Canadian officials.

On Monday, Trump threatened to double tariffs on Canadian automobiles next year, raising the rate from 25 per cent to 50 per cent on non-US content.

Ontario Premier Doug Ford responded angrily, telling Trump he could ‘kiss my ass’ while threatening to impose a surcharge on electricity exports to the United States.

Trump fired back, warning that Ford could face ‘far worse’ consequences.

The US president also referred to Canadian Prime Minister Mark Carney as a governor, renewing his controversial call for Canada to become the 51st US state.

Trump added to the tensions on Tuesday by saying he was considering renaming Lake Ontario ‘Lake America’.

He had previously ordered the name of the Gulf of Mexico to be changed to the ‘Gulf of America’.

The latest tariffs do not exempt goods covered by the United States-Mexico-Canada Agreement, known as USMCA.

Oxford Economics estimates that the measures could raise the effective US tariff rate on Canadian exports from 5.1 per cent to 6.9 per cent.

The economic research firm said plastics, electrical machinery, and wood and paper products would account for a significant part of the increase.

“Manufacturers in Quebec, New Brunswick, and Ontario will be affected the most,” Oxford Economics said.

Carney had earlier disclosed that US negotiators made fresh demands at the last stage of negotiations, including restrictions on Canada’s trade agreements with other countries.

He also accused US officials of making unacceptable threats concerning the French language and Quebec culture.

Trump rejected the allegation on Tuesday, saying he would “never interfere with Canadians speaking French” and accusing Carney of making the claim to gain political support.

The United States remains Canada’s largest trading partner, with exports to the US accounting for about 70 per cent of Canada’s total exports.

Canada, meanwhile, is the second-largest US trading partner in goods so far this year, behind Mexico.

A recent poll by the Angus Reid Institute found that many Canadians supported Carney’s decision to walk away from the negotiations, although concerns remain about the possible economic consequences of the worsening trade dispute.

The White House had earlier accused Canada of discriminatory treatment of US alcohol, automobile and dairy products in response to the new tariffs.

Trump subsequently delayed the implementation of some measures, but several days of negotiations failed to produce an agreement.