Canada has imposed retaliatory tariffs on more than 700 U.S.-made goods, totaling over $20 billion, in response to President Donald Trump's threat of a 50 percent duty on Canadian products.
Ottawa announced Tuesday that it would match the scope and scale of the U.S. tariff threats, with new rates ranging from 15 to 50 percent. The targeted American products include aluminum, steel, dairy, wood and paper items, seafood, and clothing. The Canadian Embassy in the U.S. stated that these counter tariffs will affect $27.6 billion in imports and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
The move comes amid an intensifying trade war between the two nations, with both countries imposing similar tariffs on each other's steel and lumber products. The latest exchange follows a period where negotiations between the U.S. and Canada broke down last week, despite an extended deadline for a potential trade agreement.
Personal animosity has also surfaced in the dispute. President Trump suggested renaming Lake Ontario to 'Lake America,' a move that drew criticism and further inflamed tensions. Lake Ontario, which borders New York state and the Canadian province of Ontario, has been jointly managed under a treaty for over a century. Trump previously made a similar renaming of the Gulf of Mexico to 'Gulf of America.'
Trump has warned Canada to 'fall in line' or face more severe consequences, calling the country the 'most difficult and unreasonable' to deal with. White House spokesman Kush Desai stated that "Countless American workers, farmers, and businesses have borne the brunt of America’s lopsided trade relations, including with Canada which has demanded total access to the American market without reciprocity."
Canadian Prime Minister Mark Carney had previously accused the U.S. of making demands related to French-language protections and Quebec culture during trade negotiations. Trump has denied interfering with French-language rights in Canada.
Canada's retaliatory tariffs are scheduled to take effect on September 8. Had a trade agreement been reached before the previous Saturday deadline, these additional tariffs might have been avoided.