Canada Unveils Retaliatory Tariffs On $20 Billion In US Goods

OTTAWA, Aug 25 (Reuters) — Canada revealed on Tuesday that it will impose retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of American goods, matching the value of new duties levied by Washington.

Alongside this, the government unveiled financial assistance for Canadian companies and employees caught up in the intensifying trade war.

A government statement said the counter-tariffs will take effect on US goods starting September 8, applying duty rates of 15%, 25%, and 50% across roughly 700 imported products.

To help cushion the blow for affected industries and workers, Canada also introduced a C$7.5 billion package of new and expanded measures.

These include support for small and medium-sized businesses, a stream aimed at helping companies manage cash flow, and assistance for workers whose jobs could be put at risk by the tariffs.

The escalation follows the enforcement, from Saturday, of President Donald Trump‘s new 50% tariffs on $20 billion worth of Canadian imports, after talks between the two countries aimed at averting the tariffs broke down.

Related: Trump Vows To Deal With China, Mexico, And Canada Over Illegal Immigrants And Drug Smuggling

This latest exchange of tariffs represents a further low point in Canada-US relations.

“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.

A government official said the new tariffs were structured so that the impact on Canadian consumers and businesses would be minimal, while still being capable of hitting the United States.

According to the official, the 50% tariffs target key sectors such as steel, aluminum, furniture, and clothing; the 25% tariffs cover cheese, appliances, and certain seafood products; while the 15% tariffs apply to electronics and tools.