Canada has announced it will impose tariffs on a wide range of American industries, including cosmetics, dairy, wood products, and outdoor equipment, in the coming weeks. This move is a “dollar for dollar” retaliation against levies imposed by the US.
On Tuesday, Canada’s finance and industry ministers announced the government’s “focused response” to what it considers unfair tariffs imposed by Donald Trump on Canadian products. These US tariffs took effect on Saturday after trade talks collapsed late on Friday.
The retaliatory Canadian measures are set to cover C$27.6bn (£14.6bn) in imports and will target key industries such as steel, dairy, appliances, agricultural equipment, and pulp and paper. The list from Ottawa includes more than 700 items, with most tariffs set at 25% or 50%, while a small group of items will face a 15% tariff. The levies will be effective starting 8 September and will only apply to goods originating from the US.
Finance Minister François-Philippe Champagne stated that Canada was united in its fight against the US, asserting that the country remained “masters of our own home.” Industry Minister Mélanie Joly urged businesses and consumers to buy Canadian goods as part of a broader “resistance” movement in the trade war. The government also announced more than C$7bn in support for businesses affected by the latest tariffs.
The White House claimed it was using section 338 of the Tariff Act of 1930 to protest against “discriminatory” trade policies by Canada, including provincial bans on US alcohol. Canadian Prime Minister Mark Carney had previously pledged a “dollar-for-dollar” response after roughly 5% of exports to the US were singled out by the White House.