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Tariffs hit Sept. 8
Canada announced retaliatory tariffs on Tuesday, set to take effect Sept. 8, matching President Donald Trump’s 50% duties “dollar for dollar” on more than 700 U.S. goods.
“The new duties of between 15% and 50% will take effect on Sept. 8”
The Canadian government said the new tariffs will impose duties of 15%, 25% and 50% across 700 products, with the largest share of the new measures affecting steel and aluminum.
Finance Minister François-Philippe Champagne said, “We stand united in fighting for Canada,” as Ottawa framed the response as protection for workers, businesses and industry.
The retaliation followed Trump’s weekend move imposing 50% tariffs on Canadian goods after trade negotiations collapsed, and the new Canadian duties were described as ranging from 15% to 50% on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
In the same escalation, Trump told Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs, while also threatening new 50% tariffs on Canadian vehicles, auto parts and steel.
Carney, Ford trade barbs
Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during failed talks showed that Americans wanted to “destroy our major industries,” while Trump intensified the confrontation by telling Canadian leaders to “fall in line.”
Industry Minister Mélanie Joly urged Canadians to buy Canadian products, saying doing so would help protect jobs and launch a “movement of resistance,” as the trade war threatened one of the world’s largest trading relationships.
Doug Ford, whose province is home to Canada’s auto manufacturing industry, responded to Trump’s threats by telling the U.S. president to “kiss my ass,” and later called Trump the “king of bankruptcies.”
In a separate line of pressure, Trump also floated renaming Lake Ontario “Lake America,” and Canada’s minister of industry Mélanie Joly said, “We’ll always call it Lake Ontario.”
Canada’s retaliation was paired with a support package, with AP reporting Canada announced a support package for workers and businesses affected by the dispute worth $7.5 billion in Canadian dollars ($5.4 billion in U.S. dollars).
What’s at stake
Canada’s counter-tariffs target everyday purchases as well as industrial goods, with AP saying the new tariffs extended beyond industrial products to hit seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%.
“with some facing duties as high as 50%”
The Guardian reported that Canada’s retaliation comes as European fashion retailers face scrutiny over supply chain oversight after the same period of trade escalation, while the Guardian also described an audit system critique from Clean Clothes Campaign spokesperson Ineke Zeldenrust that “audits consistently miss the most dangerous conditions.”
In the U.S., CBS News said trade experts expected the impact on U.S. prices to be modest, quoting trade attorney Patrick Childress saying the tariff rate “only applies to about 5% of Canada's exports to the U.S.”
Canada’s officials said the goal was not to raise revenue but to protect Canadian companies and reduce U.S. imports, and AP reported U.S. steel imports had already fallen 30% since Canada imposed a 25% tariff.
Still, the dispute threatens integrated supply chains across autos, energy, agriculture and manufacturing, and AP warned that uncertainty about how much prices may increase left businesses and consumers “caught in the middle.”