Canada announces retaliatory tariffs on $20 billion worth of US goods, unveils support measures

Canada on ​Tuesday announced retaliatory tariffs on C$27.6 ​billion ($19.94 billion) worth of United States ‌goods, ​matching dollar-for-dollar new duties imposed by Washington, and unveiled financial support for Canadian businesses and workers caught in the ‌escalating trade war. The counter-tariffs take effect on U.S. goods from September 8 and will impose duties of 15%, 25% and 50% across 700 products imported from south of ‌the border, a government statement said.

In terms of financial support for affected ‌workers and industries, Canada announced a C$7.5 billion package of new and enhanced measures including support for small and medium-sized businesses, a stream for funding cash flows of companies, and support for workers ⁠who could ​be at risk ⁠due to the new tariffs. From Saturday, President Donald Trump's new 50% tariffs across $20 billion of ⁠Canadian imports took effect after talks between the two countries to avert the tariffs ​collapsed. The new tit-for-tat tariffs mark a new low in the Canada-U.S. relationship. "Our dollar-for-dollar, ⁠rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, ⁠and ​businesses," Canada's Finance Minister François-Philippe Champagne said. The new tariffs are designed so that the impact on Canadian consumers and businesses is minimal and could still ⁠hit the U.S., a government official said. The 50% tariffs are on some important sectors ⁠such as steel, aluminum, ⁠furniture and clothing, 25% tariffs are on cheese, appliances and some seafood, while the 15% tariffs will be on electronics ‌and tools, ‌the official said.