Canada is escalating its response to a deepening trade conflict with the United States, announcing a new series of counter-tariffs on American imports. During a press conference held on Tuesday, Finance Minister François-Philippe Champagne stated that Ottawa would respond to recent US duties in a manner that is "proportionate, targeted, and strategic," ensuring that Washington’s levies are matched "dollar for dollar, rate for rate."
The retaliatory measures are scheduled to take effect on September 8. Canada plans to impose tariffs of up to 15%, 25%, or 50% on US imports valued at C$27.6 billion. These duties will focus on a variety of sectors, including steel and aluminium, electronics, appliances, dairy, agricultural equipment, plastics, and pulp and paper products. This announcement follows the implementation of 50% US duties on approximately C$28 billion (roughly €17 billion) of Canadian goods that took effect last Saturday, a move that occurred after trade negotiations between the two nations collapsed.
Finance Minister Champagne confirmed that Canada had been forced to end negotiations, characterizing the terms proposed by the Trump administration as "uneconomic, unfair, and ultimately unacceptable." While describing the ongoing tariff war as an "unprecedented challenge imposed on Canada," Champagne affirmed that the country would "meet the moment." To assist those impacted by the trade tensions, the government has introduced a C$7.5 billion (€4.6 billion) aid package. "We will support our workers, our businesses, and our industries with whatever it takes, for as long as it takes," he added.
The trade dispute intensified further on Monday when US President Donald Trump threatened to double tariffs on Canadian vehicles starting in 2027. Accusing Ottawa of "ripping off the United States of America for years," Trump announced via his Truth Social account that on January 1, 2027, tariffs on all cars, trucks, automotive parts, and steel would be increased to 50%. Current US tariff rates for automobiles stand at 25% for non-US content.
