Canada Hits U.S. With 50% Tariffs on Hundreds of Products

Canada announced Tuesday that it will impose tariffs of up to 50% on about 700 U.S. products worth roughly $20 billion in imports, escalating the trade dispute with President Donald Trump’s administration. The measures mirror the rate and scope of tariffs Trump imposed on Canadian goods over the weekend.

The new Canadian duties will take effect Sept. 8, with rates ranging from 15% to 50%. The tariff on U.S. steel and aluminum will double to 50%, while other affected goods include dairy products, seafood, appliances, furniture and clothing.

To help offset the impact on Canadian companies and workers, the government also announced a C$7.5 billion financial support package. Finance Minister François-Philippe Champagne said the combination of reciprocal tariffs and the support program would protect “workers, farmers, families and businesses.”

The latest escalation came as Trump criticized Canada on Tuesday over the worsening trade conflict. In a post on Truth Social, he suggested renaming Lake Ontario “Lake America,” saying he “does not expect to [be] doing much business with Ontario any longer.”

Canadian Trade Minister Dominic LeBlanc indicated that negotiations could still resume. Speaking to CNBC on Tuesday, he said Canada preferred an agreement that benefits both countries and continued to believe such a deal was possible, but added that the country was “not waiting by the phone” in the meantime.

Canada suspended trade negotiations with the United States on Friday after Prime Minister Mark Carney described U.S. demands as “unfair” and “uneconomic.” The breakdown preceded tariffs Trump had announced in July on a range of Canadian imports, including wine, dairy, cement and furniture.

Trump delayed the deadline for those tariffs by three days last week, saying the two countries had reached an agreement that was awaiting the “finalization of documents.” The administration subsequently moved ahead with tariffs under Section 338 of the Tariff Act of 1930, a law from the Great Depression era that allows the United States to impose duties on countries it determines are discriminating against American goods. The provision had never previously been used to impose tariffs.

The White House has accused Canada of discriminating against U.S.-made automobiles, alcohol and dairy products. Relations between the two countries have deteriorated during Trump’s second term, with the president repeatedly suggesting that Canada should become the 51st U.S. state and criticizing the U.S. trade deficit with its northern neighbor.