Canada announces 15-50% tariffs on US goods, warns of stopping critical minerals supply to US | Gravitas
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President Donald Trump accused PM Mark Carney of lying on the French language issue for political gain. Photograph: (AFP)
President Donald Trump claimed that Canada had been ripping off America for years and also hinted that US may change Lake Ontario's name to Lake America. Trump has repeatedly riled Canada by suggesting that it should become the 51st state of US.
After a breakdown in trade talks, Canada announced counter tariffs on US goods ranging between 15 to 50 percent from September 8 onwards. This came in response to Trump imposing a 50% tariff on around 20 billion dollars of Canadian goods.
Canada has also announced an aid package of 5.4 billion US dollars for workers and firms hit by US tariffs.
Earlier, Ontario Premier Doug Ford threatened that Canada can cut off electricity and critical mineral supply to America. He told the media that everything is on the table if the dispute worsens.
He also observed that Trump had underestimated Canadians' willingness to endure economic pain rather than give in to US pressure.
Now, why does this matter for US?
Critical minerals are increasingly important to US national security as they are essential components of military aircraft, missiles as well as munitions, which have been depleted in the Iran war.
As US tries to reduce its reliance on China, Canada's role is vital, as it is a leading global producer of critical minerals.
Aluminium, copper, potash, nickel and uranium make up the majority of its critical mineral exports, which increased by 3% to 49.4 billion US dollars in 2025.
Last year, Canada's critical mineral exports to US reached 28.8 billion US dollars, accounting for 57% of the country's critical mineral exports.
In terms of electricity too, Ontario in particular has leverage, as its power grid connects directly across the US border to Michigan, Minnesota, and New York.
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Last year, the Ontario premier had planned to impose a 25% surcharge on electricity exported to these three US states.
Now, did language also play a role in scuttling the talks?
While visiting a shipyard in Quebec, Canadian PM Mark Carney told attendees that Canada could not accept a proposed trade deal that would have weakened French language protections in the country.
Accusing America of trying to destroy its key industries, he made it clear that Canada is not a subsidiary of US.
However, Trump accused Carney of lying on the French language issue for political gain.
He said, “I would never interfere with Canadians speaking French. In fact, I have never even thought of doing such a stupid thing.”
Earlier, the US President claimed that Canada had been ripping off America for years and also hinted that US may change Lake Ontario's name to Lake America.
Trump has also repeatedly riled Canada by suggesting that it should become the 51st state of US.
While a trade deal continues to elude both nations, China may emerge as a key beneficiary.
Earlier this year, Canada reached an agreement with China to remove trade barriers and reduce tariffs.
The agreements with China were expected to unlock export orders worth three billion US dollars for Canadian businesses.
With Canada's latest slew of counter-tariffs, it appears extremely likely that tensions between the two countries Will exacerbate even further.