Canada announced retaliatory tariffs on $20 billion worth of U.S. imports, aiming to match President Donald Trump’s tariffs “dollar for dollar.”
The move escalates the growing trade war between the two countries after talks collapsed last week. Trump imposed 50% tariffs Aug. 22 on about 5% of Canadian imports. Canada’s duties take effect Sept. 8 and range from 15% to 50% on 700 products.
“Our dollar-for-dollar, rate-for-rate counter-tariffs as well as a multibillion-dollar support package will protect workers, farmers, families and businesses,” Canada’s Finance Minister François-Philippe Champagne said.
Which Products Face the Highest Tariffs?
The 50% tariffs apply to steel, aluminum, furniture and clothing. The 25% tariffs are on cheese, appliances and some seafood. The 15% tariffs will be on electronics and tools.
Trump also announced Aug. 24 that he would double tariffs to 50% on automobiles and auto parts imported from Canada. He also threatened to rename Lake Ontario as Lake America as part of the dispute.
What Could the Tariffs Mean for U.S. Shoppers?
Importers typically pay tariffs when goods cross the border, but those costs can move through the supply chain to retailers and consumers. Higher prices are possible for products that use Canadian materials or parts, while businesses that export to Canada could face weaker demand.
Canada’s counter-tariffs and the U.S. duties could also disrupt supply chains in industries such as automotive manufacturing, where production relies on components crossing the border more than once.
This article originally appeared on USA TODAY: Canada unveils $20B in tariffs to match U.S. duties “dollar for dollar.” Reporting by Bart Jansen, USA TODAY / USA TODAY. USA TODAY Network via Reuters Connect.