• Canada will impose tariffs of 15%-50% on roughly $20 billion of U.S. goods starting Sept. 8.
  • The retaliation includes doubling tariffs on steel and aluminum to 50%, and targets electronics, appliances, motorcycles, and food products.
  • Ottawa also announced C$7.5 billion in support for affected businesses and workers, following the collapse of trade talks with Washington.

Retaliation in Full Force

The Canadian government announced a sweeping set of counter-tariffs on U.S. goods, vowing a "dollar-for-dollar" response to the latest American duties. The measures, which take effect Sept. 8, will hit approximately $20 billion worth of imports, with levies ranging from 15% to 50%. Crucially, tariffs on steel and aluminum will double to 50%, matching the U.S. tariffs that were imposed after trade negotiations fell apart.

A senior Canadian official, speaking on condition of anonymity, said the government is "prepared to go further if necessary," but emphasized that "the door remains open for a negotiated solution." The official noted that the tariffs were carefully calibrated to target politically sensitive U.S. products, including motorcycles from Wisconsin and food products from key swing states.

Industry and Worker Support

In a bid to cushion the blow, Ottawa unveiled a C$7.5 billion support package for affected Canadian businesses and workers. The package includes direct aid, loan guarantees, and wage support, aiming to mitigate the impact of the trade disruption.

"This is a significant escalation, but we are confident in our position," said Trade Minister Mary Ng in a press conference. "We are defending Canadian interests and workers."

A Deteriorating Relationship

The tit-for-tat measures mark a sharp deterioration in U.S.-Canada trade relations, which were once among the closest in the world. The latest U.S. tariffs, which were announced after talks broke down, had already sparked concern among businesses on both sides of the border. Now, with Canada's response, uncertainty is likely to deepen.

Analysts warn that the two-way tariffs could disrupt supply chains and raise costs for consumers. "This is a lose-lose situation," said Laura Dawson, a trade expert at the Wilson Center. "Neither country will come out ahead if this continues."

Meanwhile, efforts to restart negotiations have been stalled. A spokesperson for the Office of the U.S. Trade Representative did not respond to a request for comment.

Looking Ahead

With Sept. 8 fast approaching, both governments face pressure to find a resolution. However, given the hardened positions, a quick compromise seems unlikely. As one Canadian official put it, "We will stand firm until we get a fair deal."

Update: This article was updated to include the reaction from Trade Minister Mary Ng.