Canada hits back at Trump with tariffs of up to 50% on US goods as trade war escalates
&imwidth=600&imheight=450&format=webp&quality=medium "Canada hits back at Trump with tariffs of up to 50% on US goods as trade war escalates")
This combination of pictures shows US President Donald Trump in the Oval Office of the White House in Washington, DC, on August 10, 2026, and Canadian Prime Minister Mark Carney in Ottawa, Canada, on June 25, 2026. Photograph: (AFP)
Canada has announced counter-tariffs of up to 50 per cent on US goods as trade tensions with the Trump administration intensify following the collapse of bilateral trade talks.
Canada on Tuesday (August 25) announced counter-tariffs of 15 to 50 per cent on United States goods as tensions between Washington and Ottawa continued to rise after bilateral trade talks aimed at renegotiating commercial ties collapsed.
The Canadian government said the retaliatory tariffs will take effect on September 8. Prime Minister Mark Carney had earlier announced "dollar-for-dollar" retaliation in the same timeframe after US President Donald Trump's 50 per cent tariffs on Canadian products came into effect on Saturday.
Ottawa said its new duties will match the tariff levels imposed by the US. The measures will affect several sectors, including steel, dairy and electronics.
Canada has also announced a $5.4 billion (CA$7.5 billion) aid package for businesses and workers affected by the tariffs.
"This is an unprecedented challenge imposed on Canada. But Canada will meet the moment," Canada's Finance Minister Francois-Philippe Champagne said.
"I think what Canadians can see this morning is that we stand united. We stand united in our response," he added.
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Canada targets key US goods
The latest US tariffs affect about $20 billion worth of Canadian goods, which account for around 5.5 per cent of Canada's exports to the United States.
Under Canada's response, US steel and aluminium products that previously faced a 25 per cent duty will now face tariffs of 50 per cent.
Other goods will face 25 per cent tariffs. These include appliances, dairy products such as cheese, and some steel and aluminium derivative products.
A smaller group of products will face a 15 per cent duty. This category includes electric equipment and tools.
Together, these goods account for about 7.3 per cent of Canada's imports from the United States.
Trump steps up criticism of Canada
Amid escalating tensions between the two historically close partners, Trump on Tuesday said he was considering renaming Lake Ontario as "Lake America". Last year, he pushed for the Gulf of Mexico to be called the "Gulf of America".
Canada is currently the second biggest US trading partner in goods this year, behind Mexico.
Earlier in the day, Trump also repeated his claim that Canada has been "ripping off the United States as the country lost "on average 60 billion dollars a year in trade for the last 10 years."
"They have been charging our Farmers 400% Tariffs, and more. They have driven many wonderful U.S. companies out of business," Trump said in a Truth Social post
“For 10 years they wouldn’t certify Gulfstream Jets until I got involved. They wanted 100% of the market for Gulfstream’s Canadian competitor. 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!,” he added.
