Canada announces 'dollar-for-dollar' retaliatory tariffs on US as high as 50%

Canada described its counter-tariffs on the US as "proportionate" and "strategic". Canada has confirmed counter-tariffs as high as 50% on a range of US goods in retaliation to the latest wave of levies on Canadian imports imposed The Canadian tariffs will apply to nearly C$28bn ($20bn; £15bn) worth of American products, ranging from steel to furniture, fresh tuna and cotton T-shirts, authorities confirmed on Tuesday.

It is the latest escalation after US-Canada trade talks fainted late last week, with each side accusing the other of making last-minute demands that were unreasonable. Finance Minister François-Philippe Champagne shared that Canada's retaliation is in response to 50% tariffs imposed "Those tariffs will have real consequences for Canadian workers, businesses and communities across our nation," he shared.

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Core Findings and Detailed Timeline

"Canada must respond." Champagne characterised Canada's retaliation as "proportionate" and "strategic". Placing taxes on trade between what are historically two of the world's closest trading partners will undoubtedly lead to pain on both sides of the border.

Supply chains which have been developed over decades are set to see increased trading costs due the latest tariff announcements made from both the US and Canada, ultimately hitting businesses of all sizes and consumers through potentially higher prices.

This video can not be played Watch: "Absolutely ridiculous": Canadians react to new tariff tensions with the US President Trump has yet to comment on the latest Canadian countermeasures. Still, in a series of Tuesday posts on Truth Social, Trump accused Canada of "ripping off" the US for decades and of charging American farmers steep tariffs.

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"I deal with many countries, and Canada is easily the most difficult and unreasonable," Trump wrote. "They feel entitled, but they are not a State, and will be entitled no longer!" He also suggested that he will change the name of Lake Ontario, one of the Great Lakes on the US-Canada border, to Lake America, writing: "We don't expect to doing much business with Ontario any longer." On Monday, Trump threatened to hike US tariffs on Canadian automobiles to 50% as of 1 January.

Broader Implications and Future Outlook

Prime Minister Mark Carney responded Public rhetoric on both sides reached a fever pitch on Monday, but some authorities struck a more diplomatic tone on Tuesday with hopes that talks could be resumed. After calling Trump a "loser" on Monday at a news conference, Ontario Premier Doug Ford acknowledged in an interview with CNN that "things got a little heated".

"But I want to make a deal — a good deal for the American people, a good deal for Canadians," Ford shared. The escalation also puts into question the future of a North American free trade pact between Canada, the US and Mexico called the USMCA.

President Claudia Sheinbaum had despatched her economy secretary, Marcelo Ebrard, to Washington for emergency talks after trade negotiations fainted with Canada.

How Canada could hit back to hurt the US economy - and Trump 'Half my business will be gone' - firms in Canada and US fear trade war Canada released on Tuesday a list of around 700 US products that will be hit A 50% tariff on steel and aluminum products that were previously only subject to a 25% counter tariff A 50% tariff on various other goods including natural honey, furniture, clothing and apparel, makeup and perfume A 25% tariff on goods including appliances, dairy products, such as cheese, fish and seafood, and certain steel and aluminum derivative products A 15% tariff on certain types of tools and machinery, including forklifts and air conditioning machines