Canada on Tuesday announced that it is imposing tariffs of up to 50% on about $20 billion of U.S. imports, aiming to match the Trump administration’s recently announced import duties on Canadian imports.
“Today, I’m announcing Canada will match the U.S. tariffs dollar for dollar, up to 50% on $27.6 billion of imports from the United States of America,” Canadian Minister of Finance and National Revenue François-Philippe Champagne said in a press conference to announce the measure. “For each product, our tariff would match the U.S. tariff on the same type of good.”
The amount of goods impacted by the new tariffs, announced in Canadian dollars, translates to about $20 billion in U.S. dollars. The tariffs will focus on steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics that are targeted by the measures announced by the Trump administration.
The Canadian tariffs on U.S. imports will go into effect on Sept. 8.
Canadian officials also announced aid for workers and businesses that could be hurt by the U.S.-imposed tariffs, including loans and income support for employees.
The tension threatens one of the world’s largest trading relationships. The new tariffs will extend well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with Canadian officials on Monday saying that the measures are designed to protect their nation’s businesses and workers.
Canada’s retaliation came after the Trump administration imposed 50% tariffs on Canadian goods over the weekend following the collapse of trade negotiations between the two nations. Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during the failed talks showed that Americans wanted to “destroy our major industries.”
On Tuesday, Champagne said Canada’s plan is to strengthen its own economy and extend trade relations with other countries, noting that he plans to meet a trade official from India this week. He also mentioned that Canada is entering the trade war with the U.S. from a position of fiscal strength, with the lowest net debt-to-GDP ratio among the G7 nations and a triple-A credit rating.
“Ultimately the terms proposed by the U.S. were uneconomic, unfair and ultimately, unacceptable,” Champagne said. “We stood up for our workers. We stood up for our businesses. We stood up for Canada.”
Canada’s tariff rates
Canada said it will impose tariffs of 15%, 25% and 50% on products that are targeted by the U.S.
The new U.S. 50% levies on Canadian goods were enacted under Section 338 of the Tariff Act of 1930, which grants the White House authority to impose duties on imports from a trade partner that is discriminating against U.S. commerce.
The U.S. products that Canada will target with new tariffs include:-
* Fish imports like salmon and trout: 25% tariff
* Lobsters and mollusks like clams: 25% tariff
* Carpets and floor coverings: 25% tariff
* Appliances like stoves and air conditioners: 25% tariff
* Milk, cream and cheese: 50% tariff
* Perfume and other cosmetics: 50% tariff
* Toilet paper and facial tissue: 50% tariff
* Clothing like men’s and women’s coats: 50% tariff
* Video game consoles: 50% tariff
* Golf clubs and fishing rods: 50% tariff
* Steel products: 50% tariff
* Aluminum products: 50% tariff
By CBS News
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