Canada Hits US With $20 Billion in Retaliatory Tariffs on Over 700 Goods as Trade War Escalates

Canada announced retaliatory tariffs on C$27.6 billion (roughly $20 billion) worth of US annual imports on August 25, matching Washington's latest duties dollar for dollar. Canadian Finance Minister Francois-Philippe Champagne said the countermeasures impose rates of 15%, 25% and 50% across more than 700 US products, with the heaviest levies targeting steel and aluminum, and also covering dairy, appliances, agricultural equipment, pulp and paper, and electronics. The new duties take effect September 8.

Ottawa simultaneously unveiled financial aid for Canadian businesses and workers affected by the escalating dispute. Prime Minister Mark Carney acknowledged the retaliation would raise costs and reduce choice for Canadians, while Trump separately threatened to rename Lake Ontario. Sectors already battered by wildfires or earlier tariff rounds face compounded pressure, and the trade fight has raised fresh concerns about US electricity imports and prices.

Both governments have left the door open to pulling back from an all-out trade war, though no resolution appeared imminent.