Canada said on Tuesday that it will match the latest U.S. tariffs dollar for dollar, with counter-tariffs on American goods taking effect on September 8.
DR reports that the Canadian government announced the measures at a press conference with several ministers. Finance Minister François-Philippe Champagne said Canada would match the American tariffs dollar for dollar from September 8. He framed the decision as a choice to build up Canada.
The announcement follows the collapse of trade talks between the two countries on Friday, according to DR. President Donald Trump then imposed 50 percent tariffs on certain Canadian goods. Prime Minister Mark Carney responded by promising Canadian retaliatory duties.
Reuters reported that the countermeasures cover about 20 billion dollars, or roughly 28 billion Canadian dollars, in U.S. imports. Some 700 products are affected, with duties set at 15, 25 and 50 percent depending on the item. Reuters added that the list was calculated using 2024 trade figures.
The Department of Finance in Ottawa said the targeted sectors include steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. CNBC noted that the single largest component is a 50 percent tariff on American steel and aluminum. BBC reported that furniture and clothing are also among the affected categories.
According to BBC, the Canadian package is designed to mirror existing U.S. tariffs on Canadian steel, aluminum, automotive products and lumber, as well as the newest 50 percent levies. DR reports that Canada has also set aside about 35 billion kroner to protect Canadian jobs. Reuters put the support package at 7.5 billion Canadian dollars, with delayed repayment terms running through the end of the Trump administration.
Industry Minister Mélanie Joly said at the press conference that the tariffs had been designed to hit specific American states, per DR. She urged Canadians to choose Canadian products, saying this both pressures the United States and protects Canadian jobs.
DR’s correspondent in the United States, Trine Marie Ilsøe, said the trade war will hurt Canada just as much. She noted that aid packages for small businesses have already been announced. As stated by Ilsøe, the Canadian government has public opinion behind it for now.
What triggered the timing
The Department of Finance said the countermeasures respond to the U.S. decision to impose a 50 percent tariff on 27.6 billion Canadian dollars of Canadian goods, effective August 22. The ministry said the announcement came after the trade negotiations broke down.
Reuters reported earlier on Tuesday that Canadian officials had signaled the response could come that day. That followed a threat from Trump of higher tariffs on cars and trucks from Canada.
