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Tariffs hit Sept. 8
Canada announced retaliatory tariffs on Tuesday against the United States, matching Washington “dollar for dollar” the 50% duties President Donald Trump imposed over the weekend after a breakdown in trade talks.
“Canada on Tuesday announced retaliatory tariffs against the United States, matching "dollar for dollar"”
Ottawa said the counter-tariffs cover more than 700 U.S. goods and are worth about $20 billion, with rates ranging from 15% to 50% and 50% duties on American steel and aluminum.
The new tariffs are set to take effect Sept. 8, and Canada also unveiled an additional $7.5 billion package to support businesses and workers being harmed by the U.S. tariffs.
Prime Minister Mark Carney said the decision to retaliate “will raise costs and reduce choice for Canadians,” while CNBC reported that Canada suspended negotiations on Friday evening after contending the U.S. made unreasonable demands.
In the same escalation, Trump threatened to rename Lake Ontario to “Lake America,” and Canadian officials said they were not waiting by the phone for a deal.
Officials trade barbs
Canadian Finance Minister François-Philippe Champagne framed the move as a “proportionate, targeted, and strategic” response, saying the U.S. duties “will have real consequences for Canadian workers, businesses, and communities across our nation.”
Industry Minister Mélanie Joly told reporters that Canada was selecting products “with the upcoming US midterm elections in mind,” adding, “We’re also targeting products that will target states in the US.”
The confrontation sharpened as Trump used social media to accuse Canada of “ripping off American farmers” and to say the U.S. was considering changing the name of Lake Ontario to “Lake America.”
In response to the threats, Reuters reported that Canada’s counter-tariffs were designed to match Washington “dollar-for-dollar, rate-for-rate,” and that the measures take effect on September 8.
NPR also quoted Champagne saying, “When the United States asked too much and offered too little, we chose to stand up for Canadians,” as the trade fight deepened.
What’s at stake next
The tariff lists and the timing set up a longer standoff, with Canada saying its counter-tariffs take effect Sept. 8 at rates of 15%, 25% and 50% on more than 700 products.
“Prime Minister Mark Carney, in a speech following the failed trade talks, acknowledged that the decision to retaliate "will raise costs and reduce choice for Canadians."”
Reuters said the U.S. tariffs that prompted Canada’s response took effect on Saturday after talks collapsed, and it reported that Canada’s retaliation would “protect workers, farmers, families, and businesses.”
CNN reported that the risk for Americans is that Canadian tariffs could weaken demand for U.S. goods, potentially forcing employers to cut workers’ hours or resort to layoffs, while also noting Trump’s threat to double tariffs on Canadian cars and auto parts to 50% starting January 1.
Ontario Premier Doug Ford told reporters that “nothing is off the table,” and CNN said he floated cutting off electricity exports to the United States if the trade war worsens, naming New York, Michigan and Minnesota.
In parallel, Reuters said Canada’s support package includes interest-free loans from the Business Development Bank of Canada of between C$2.5 million and C$5 million, with companies not required to make repayments for 36 months.