Canada announces ‘dollar for dollar, rate for rate’ retaliatory tariffs on US

Canada announced retaliatory tariffs on hundreds of American products as high as 50 percent Tuesday, just days after the collapse of negotiations between the two countries.

Canadian Finance Minister François-Philippe Champagne said Canada will match the U.S.’s tariffs “dollar for dollar, rate for rate.” The tariffs would take effect Sept. 8.

He said the 15 percent, 25 percent and 50 percent tariffs will be on $27.6 billion of imports from the U.S.

“For each product, our tariff will match the American tariff on the same type of Canadian good,” he said.

Arguably the biggest measure is Canada doubling its tariffs on U.S. steel and aluminum to 50 percent to match the 50 percent the U.S. put on Canadian steel and aluminum.

“Those tariffs will have real consequences for Canadian workers, businesses, and communities across our nation,” Champagne said of the U.S. tariffs. “Canada must respond, and today we are in a proportionate, targeted, and strategic way.”

He said the countertariffs “are designed primarily to provide protection for Canadian industries impacted by the U.S. tariffs and allow them to compete against U.S. products in the Canadian market.”

Canada released a list of over 700 items that will be targeted with tariffs ranging from live fish, frozen fish, cheese, some apparel, carpets and metal products made of steel or aluminum, among others.

The U.S.’s 50 percent tariffs went into effect on Saturday across over $20 billion of Canadian imports after negotiations collapsed late Friday.

Trump threatened to impose 50 percent tariffs on a plethora of Canadian imports in response to “discriminatory” trade measures. The U.S. tariffs fall under Section 338 of the Tariff Act of 1930, the administration said when announcing them last month.

Section 338 is a long-dormant law that allows the president to impose tariffs of up to 50 percent on a country found to discriminate against U.S. products. It does not require an investigation before tariffs are imposed.

Trump on Monday then threatened to hit Canada with 50 percent tariffs on imported cars, trucks, auto parts and steel, which would take effect on New Year’s Day.

“Canada has been ripping off the United States of America for years,” he wrote on Truth Social. “Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE!”

Trump said Canada will no longer “be treated like a State.”

“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” he said. “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite!”

Canada for its part has remained strong against the U.S. measures. Canadian officials also announced a $7.5 billion CAD package to help support domestic businesses that are harmed by the tariffs.