Canada hits US with retaliatory tariffs as trade war intensifies
Canada has announced retaliatory tariffs on $20 billion worth of US goods
Canada has announced retaliatory tariffs on $20 billion worth of US goods, as the trade war between the neighbouring countries heats up.
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The counter-tariffs are set to take effect on US goods from September 8 and will impose duties of 15%, 25% and 50% across 700 products imported from south of the border, a government statement said.
From Saturday, President Donald Trump's new 50% tariffs across $20 billion of Canadian imports took effect after talks between the two countries to avert the tariffs collapsed.
The new tit-for-tat tariffs mark a new low in the Canada-US relationship.
"Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses," Canada's Finance Minister François-Philippe Champagne said.
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The new tariffs are designed so that the impact on Canadian consumers and businesses is minimal and could still hit the US, a government official said.
The 50% tariffs are on some important sectors such as steel, aluminum, furniture and clothing, 25% tariffs are on cheese, appliances and some seafood, while the 15% tariff will be on electronics and tools, the official said.
The new tariffs are likely to be costly for businesses and consumers in both countries, sparking inflation.