Canada has announced counter-tariffs of up to 50% on a wide range of US products after President Donald Trump imposed a new wave of tariffs on Canadian imports, deepening a trade dispute between the two North American neighbours.
The Canadian measures will cover almost C$28 billion ($20 billion) worth of American goods, including steel, furniture, fresh tuna and cotton T-shirts, Canadian officials said Tuesday. The tariffs are scheduled to take effect on September 8.
Officials said the targeted products were selected to correspond with Canadian goods affected by the latest US tariffs. The move follows the collapse of trade negotiations between Ottawa and Washington last week, with both governments accusing the other of making unacceptable demands during the final stages of talks.
Finance Minister François-Philippe Champagne said Canada’s response was necessary after the Trump administration imposed 50% tariffs on a range of Canadian products.
“Those tariffs will have real consequences for Canadian workers, businesses and communities across our nation,” Champagne said. “Canada must respond.”
He described the new measures as proportionate and strategic. Ottawa will also provide an additional C$7.5 billion in support programmes for businesses and workers affected by US tariffs, with the aim of limiting job losses and helping companies remain operational.
The dispute threatens supply chains that have developed across the US and Canadian economies over decades. Higher costs for cross-border trade could affect manufacturers, retailers and consumers in both countries, with businesses potentially passing increased expenses on to customers.
Canadian public opinion has largely supported the government’s decision to challenge the US tariffs, although questions remain about why negotiations collapsed. Canada’s Conservative opposition has called for the full draft agreement with Washington to be released.
Business groups have warned that a prolonged trade conflict with the United States could create significant economic difficulties because the US is Canada’s largest trading partner.
The White House rejected Canada’s account of the negotiations, saying Washington had offered Canada highly favourable access to the US market.
“Instead of partnership, Canada chose unreasonable demands, walk-backs, and flat-out rejection,” the White House said.
Trump also criticised Canada in posts on Truth Social, accusing the country of taking advantage of the US for decades. He warned that US tariffs on Canadian automobiles could rise to 50% from January 1.
Prime Minister Mark Carney accused Trump of seeking to damage major Canadian industries, including automobile manufacturing, steel and aluminium.
Despite the increasingly heated rhetoric, some officials have signalled that negotiations could resume. Ontario Premier Doug Ford said the dispute had become heated but stressed that he wanted an agreement beneficial to both countries.
The escalation also raises questions about the future of the USMCA trade agreement linking the United States, Canada and Mexico. Mexican President Claudia Sheinbaum has sent Economy Secretary Marcelo Ebrard to Washington for emergency discussions following the breakdown in Canadian-US negotiations.
