CANADA HITS US GOODS WITH RETALIATORY TARIFFS

Canada has announced retaliatory tariffs on about C$27.6 billion ($20 billion) worth of goods imported from the United States, escalating the trade dispute between the two North American neighbours.

The Canadian government said the new tariffs, which will take effect on September 8, 2026, will range from 15 per cent to 50 per cent and will match the tariffs imposed by the United States on Canadian products.

The measures cover more than 700 products, including steel, dairy products, appliances, agricultural equipment, furniture, pulp and paper, electronics and other manufactured goods.

The retaliation follows Washington’s decision to impose a 50 per cent tariff on about $27.6 billion worth of Canadian goods from August 22.

Canadian Prime Minister Mark Carney said the government’s response was designed to protect Canadian workers and businesses while putting pressure on Washington to reconsider its trade measures.

Canada has deliberately excluded some key sectors, including energy and potash, from the latest countermeasures in an effort to limit the impact on its own economy.

The government has also announced a C$7.5 billion support package for businesses and workers affected by the trade conflict, including financing support for small and medium-sized businesses.

The latest measures mark a further deterioration in trade relations between the two countries, which have nearly $900 billion in annual trade.

Economists warn that prolonged tariff tensions could increase costs for businesses and consumers, disrupt supply chains and weigh on economic growth on both sides of the border.

Both countries still have an opportunity to negotiate before some additional tariff measures take effect, but the escalating trade dispute has raised concerns about a broader North American trade war.