NEW YORK — Canada will impose retaliatory tariffs of up to 50% on $20 billion worth of U.S. goods.
The Canadian government said on the 25th, local time, that it would levy tariffs of 15%, 25% and 50% on about 700 products starting September 8. The government also said it would introduce a support package worth 7.5 billion Canadian dollars to help businesses and workers hurt by the new U.S. tariffs.
Steel and aluminum products, along with furniture and clothing, will face a 50% tariff. Cheese, home appliances, some seafood, and steel and aluminum derivatives will be taxed at 25%, while machinery, industrial tools and agricultural equipment will carry a 15% tariff.
Canada's tariffs are a countermeasure to a 50% tariff that President Donald Trump's administration imposed on $20 billion worth of Canadian goods starting on the 22nd. Canada said it was responding in what it called a "dollar-for-dollar, rate-for-rate" approach that matches the amount and rates of the U.S. measures.
Trump had earlier warned on the 20th of last month that he would impose a 50% tariff on some Canadian imports from the 19th of this month, saying Canada was discriminating against the United States in the automobile, alcohol and dairy industries. At the time, he also cited air pollution in the eastern United States caused by wildfires in Canada as grounds for the tariffs. The two countries extended the tariff start date by three more days and held last-minute negotiations, but ultimately failed to reach a compromise.
The U.S. tariffs are based on Section 338 of the Tariff Act, enacted in 1930 during the Great Depression. The provision allows the president to impose tariffs of up to 50% on countries that discriminate against U.S. commerce. The goods subject to the tariffs include some dairy products, alcohol, hockey equipment, machinery, textiles, cement and furniture.
The latest 50% tariff is seen as different in character from earlier tariffs, which exempted goods covered by the United States-Mexico-Canada Agreement (USMCA), in that it represents a standalone trade attack. Canadian Prime Minister Mark Carney pushed back in a statement on the 21st, saying, "We will impose tariffs equal in scale to the U.S. tariffs to protect our workers and businesses."
