Canada Fires Back: 50% Tariffs on $20B US Goods in Dollar-for-Dollar Trade War

Ottawa, Canada – Canada has announced it will impose tariffs on a wide range of key American industries including cosmetics, dairy, wood products and outdoor equipment in the coming weeks, as it retaliates roughly "dollar for dollar" against levies imposed by the US.

In a strong Canadian countermove to tariffs levied by Donald Trump, which took effect on Saturday after trade talks collapsed the day before, Canada's finance and industry ministers on Tuesday called the measure a "focused response" to what they see as unfair trade practices.

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 – a ban that was only implemented in protest against tariffs imposed on Canadian goods last year.

The prime minister, Mark Carney, had previously pledged a "dollar-for-dollar" response from his government after roughly 5% of exports to the US were singled out by the White House.

The retaliatory Canadian measures will cover C$27.6bn ($19.9bn) in imports and are meant to target key industries including steel, dairy, appliances, agricultural equipment, pulp and paper.

The list from Ottawa has more than 700 items, ranging from hockey sticks to ornamental fish and toilet paper to smoked lobster, with most of the tariffs set at 25% or 50%. A small group of items, including air conditioning units and tool parts, will face a lower 15% tariff. The levies will be effective starting 8 September and only apply to goods originating from the US.

List of Targeted US Products

Some of the many US items Canada is now targeting include:

• Live, chilled, dried, salted or in brine, smoked and frozen fish, crustaceans (e.g. lobster), molluscs (e.g. oysters, clams, mussels) and other aquatic invertebrates (25%)
• Milk and cream in powder, granules or other solid forms, and whey (50%)
• Cheese and curd products (25%)
• Natural honey, molasses and baking mixtures (50%)
• Perfume, makeup and hair preparations (50%)
• Carpets (25%) and plywood (50%)
• Toilet paper and facial tissues (25%) notebooks and envelopes (50%)
• T-shirts, jackets, dresses, coats, gloves and other garments (50%)
• Various metal products made of steel or aluminum, including wire, rods, tubes, pipes, foil, screws, nuts and bolts (50%)
• Stoves, ranges, refrigerators, dishwashers, washing and drying machines, hairdryers, and other household appliances (25%) air-conditioning machines (15%)
• Smartphones and video game consoles (50%)
• Motorcycles (50%) and trailers (25%)
• Fishing rods, golf clubs and exercise equipment (50%)

Canadian Officials Speak Out

In announcing the retaliatory measures, the finance minister, François-Philippe Champagne, said the country was united in its fight against the US, telling attendees that Canada remained "masters of our own home".

The industry minister, Mélanie Joly, called on businesses and consumers to buy Canadian goods as part of a broader "resistance" movement in the trade war.

"You have power," she said.

The government also announced more than C$7bn in support for businesses affected by the latest tariffs, adding to more than C$20bn in support announced over the past 18 months.

Trump Escalates Rhetoric

Earlier on Tuesday, Trump said he was giving "serious consideration" to changing the name of Lake Ontario to "Lake America" – reminiscent of his decision to rename the Gulf of Mexico to the Gulf of America. Others pointed out that Ontario, Canada's most populous province, was named after the lake, not the other way around.

Trump's frustration with Ontario in particular stems from his feud with the province's premier, Doug Ford, who called the president a "loser" and the "king of bankruptcies" and told the US president to "kiss my ass". He also threatened to cut electricity and rare earth metal exports to the US.

Trump called Ford a "flunky" of "Governor Carney" and warned "these clowns to 'fall in line' or, the consequences for Canada will be far WORSE!"

Trump later alluded to revelations that his trade negotiators had looked to weaken French language rules, saying he would "never interfere" with Canadians speaking French, calling it a "lie … made up by a weak and ineffective Prime Minister in an attempt to gain political support".

Trump later added: "I love French Canadians!"

Meanwhile, Donald Trump has continued to blast Canada for "ripping off" the US "for decades".

"They have been charging our Farmers 400% Tariffs, and more. They have driven many wonderful U.S. companies out of business. For 10 years they wouldn't certify Gulfstream Jets, until I got involved. They wanted 100% of the market for Gulfstream's Canadian competitor," the president wrote on Truth Social. "I deal with many countries, and Canada is easily the most difficult and unreasonable. They feel entitled, but they are not a State, and will be entitled no longer!"

What's Next

• Tariff implementation: Canadian tariffs take effect 8 September
• US response: Potential additional US tariffs or measures
• Business impact: How affected industries respond
• Consumer effect: Price increases on both sides
• Diplomatic efforts: Any attempts to de-escalate