Canada has imposed tariffs on $19.9 billion worth of U.S. goods that will take effect on Sept. 8 amid a breakdown in trade talks with Washington.
Canada has announced retaliatory tariffs against the United States as the trade war between Washington and Ottawa escalates, affecting hundreds of products.
On Tuesday, the Canadian government announced it would impose tariffs on C$27.6 billion, or $19.9 billion worth of U.S. goods, comparable “dollar-for-dollar” with new U.S. tariffs imposed by President Trump. It also announced new financial support plans for companies caught up in the trade war.
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The government said in a statement that the anti-tariffs will affect more than 700 products, including steel and aluminum, dairy products, household appliances, agricultural machinery, pulp and paper, plastics and electronics sectors.
The tariffs range from 15% to 50% and will take effect on September 8th.
The Canadian government also announced a new C$7.5 billion ($5.42 billion) financing package to help small and medium-sized businesses reduce financial risks posed by new tariffs.
Negotiations worsen
The new tariffs come after U.S. President Donald Trump imposed 50% tariffs on Canadian goods on Saturday, impacting $20 billion worth of Canadian goods just days after the deal was announced.
President Trump will announce new tariffs on Canadian cars on Monday, doubling existing tariffs to 50% starting January 1.
President Trump has also hurled insults at Canada in recent days. On Tuesday, President Trump said he was considering renaming Lake Ontario, the easternmost part of the Great Lakes bordering the Canadian province of Ontario, to “Lake of America.” The US president also referred to Prime Minister Mark Carney as “Governor Carney” and reiterated his long-standing statement that he would annex Canada as the “51st province.”
On Tuesday, President Trump claimed in a post on Truth Social that the United States has lost $60 billion a year to Canada over the past decade.
However, Canada maintains a trade surplus with the United States of C$9.9 billion ($7.1 billion), according to Statistics Canada. Al Jazeera asked the White House for clarification but did not receive a response.
US consumers are feeling the pinch
The impact of US tariffs is expected to be felt on US businesses and consumers. Cars and auto parts are exempt from the tariffs imposed on Saturday, but they are a point of contention between Washington and Ottawa.
Canada is the largest buyer of U.S.-made cars, which could put pressure on U.S. automakers that rely on Canadian demand.
Meanwhile, U.S. households could face higher prices on 550 consumer goods imported from Canada due to President Trump’s 50% tariffs. These products include ice skates, toilet paper, some alcoholic beverages, paint, and more.
A report from the Kiel Institute for the World Economy, an economic think tank, found that U.S. importers and consumers absorb 96 percent of the tariff burden, which could have a major impact on Americans.
market reaction
Gold prices, largely considered a safe investment in times of economic uncertainty, are trending higher after falling nearly 1% early Tuesday. It was almost flat, down just 0.03% to $4,696 an ounce.
The U.S. dollar remained fairly stable, down 0.04% to 98.96 on Tuesday, while the Canadian dollar index rose 0.04% to 72.27.
On Wall Street, the Nasdaq rose 0.5%, the Dow Jones Industrial Average was flat and the S&P 500 rose 0.2%.
In the Toronto market, the S&P/TSX composite index rose 0.6%.
