Canada will respond to Washington’s new duties with equivalent tariffs on C$27.6 billion worth of U.S. imports beginning September 8.

Canada announced tariffs of up to 50% on products from the United States, including steel, furniture and clothing, after trade negotiations with Washington failed, according to EFE and confirmation from Canada’s Department of Finance.

  • Why it matters: The retaliation expands the trade war between two close economic partners and affects sectors including electronics, food, appliances and agricultural machinery.

Canada Will Respond “Dollar for Dollar and Rate for Rate”

Prime Minister Mark Carney’s government will impose tariffs of 15%, 25% and 50%, depending on the U.S. product.

The measures will take effect at 12:01 a.m. on September 8 and will cover imports valued at about C$27.6 billion, equivalent to roughly US$20 billion.

  • What changes: Canada will match the rates that the United States began applying on August 22 to Canadian goods.
  • The sectors: Steel, dairy products, appliances, agricultural machinery, pulp and paper, and electronics are among the main products affected by the Canada tariffs on US products.

The Department of Finance said the 50% tariff will apply to steel and aluminum products that previously faced a 25% duty, as well as furniture and clothing.

Products such as appliances, cheese, fish and seafood will face 25% tariffs.

Ottawa Defends the Measure as Protection for Its Market

Finance Minister François-Philippe Champagne described the trade conflict initiated by the United States as “an unprecedented challenge.”

The official said the countermeasures are intended to protect Canadian workers, producers and businesses from US products in the domestic market.

  • Canada’s position: Ottawa says the retaliatory measures were not specifically designed to harm particular US states.
  • The conflict: Carney suspended negotiations after concluding that Washington “was asking for too much and offering too little.”

The prime minister hardened his stance by saying the United States was seeking to harm strategic Canadian sectors, including the auto, steel and aluminum industries.

“We will not accept an agreement based on the premise that Canada is a subsidiary of the United States,” Carney said, according to EFE.

Canada Allocates C$7.5 Billion to Address the Tariffs

CANADA, UNITED STATES, TRUMP, TARIFFS, ECONOMY, GOVERNMENT, Canada Imposes 50% Tariffs on US Products Including Steel and Electronics
Canada Imposes 50% Tariffs on US Products Including Steel and Electronics – PHOTO: IA MundoNow

Ottawa also announced C$7.5 billion in new assistance for workers and businesses affected by US trade measures.

That money comes on top of nearly C$25 billion mobilized over the past 18 months, according to the Canadian government.

  • For businesses: There will be an additional C$1.5 billion for small and medium-sized companies and a C$500 million liquidity facility.
  • For workers: Another C$3.5 billion will fund employment assistance, training and programs designed to help companies retain workers.

In addition, Canada will invest C$2 billion in projects for companies affected by the tariffs.

Ottawa is keeping open the possibility of resuming negotiations with Washington, but Carney said any agreement must respect Canadian sovereignty and benefit both countries.

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SOURCE: EFE / Government of Canada