CANADA HITS BACK WITH FRESH TARIFFS ON $20BN OF US GOODS

Canada has announced new retaliatory tariffs on about C$27.6 billion ($19.94 billion) worth of goods imported from the United States, escalating an already tense trade dispute between the two North American neighbours. The measures are aimed at matching the latest tariffs imposed by the US on Canadian products.

The Canadian government said the new duties will cover around 700 American products, with tariff rates ranging from 15 per cent to 50 per cent. The affected goods include steel, aluminium, furniture, clothing, dairy products, electronics and machinery. The new measures are scheduled to take effect on September 8, 2026.

The latest action follows the imposition of new US tariffs on Canadian goods by President Donald Trump’s administration. Ottawa’s response represents a dollar-for-dollar retaliation and reflects the growing strain in the trade relationship between the two countries, which maintain one of the world’s largest bilateral trading relationships.

Canadian authorities have also introduced a C$7.5 billion support package for businesses and workers expected to be affected by the trade conflict. The package includes financial assistance and interest-free loans intended to help companies manage the impact of the tariffs and protect jobs as uncertainty continues to affect cross-border commerce.

Canadian officials have described the measures as targeted and strategic, saying the government wants to protect domestic industries and workers while putting pressure on Washington. The tariffs are also expected to have political implications in the United States because some of the targeted products are important to industries in several states.

The escalating dispute has raised concerns about the wider economic consequences for both countries. Canada and the United States conduct hundreds of billions of dollars in annual trade, meaning prolonged tariff measures could increase costs for businesses and consumers while disrupting established supply chains.

With the new Canadian tariffs set to take effect in September, attention is now turning to whether both governments can return to negotiations and prevent the dispute from developing into a broader trade war. The latest measures underline the deteriorating relationship between the two countries and the economic risks associated with continued tariff escalation.