Canada has announced retaliatory tariffs worth nearly $20 billion on American imports, sharply escalating the trade war between the two neighbours. The new duties, ranging from 15% to 50% across about 700 products, will take effect on September 8. Ottawa has doubled tariffs on US steel to 50% from 25%, intensifying pressure on the sector.
The measures target a wide range of goods including steel, aluminium, furniture, clothing, cheese, appliances, seafood, electronics and tools. To cushion the blow, the Canadian government has unveiled a C$7.5 billion support package for businesses, industries and workers affected by the tariffs.
This move comes in direct response to US President Donald Trump’s decision to impose 50% tariffs on $20 billion of Canadian imports after trade talks collapsed. The tit-for-tat escalation highlights the deepening rift between two of the world’s largest trading partners, raising fears of higher consumer prices, strained supply chains and economic uncertainty.
Analysts warn that prolonged tariff battles could hurt industries on both sides of the border, while political tensions may further complicate negotiations. With both countries standing firm, businesses brace for disruption as the trade war enters a more aggressive phase.
