Canada announces counter-tariffs covering roughly $20 billion of products
Key Takeaways
- •Canada’s counter-tariffs total C$19.94 billion and are intended to mirror the value of the US tariffs it is responding to.
- •The new duties begin on September 7 and will apply to roughly 700 products.
- •Tariff rates will be set at 15%, 25% or 50%, depending on the product category.
- •Steel, aluminum, furniture and clothing will face the highest 50% rate, while cheese, appliances and some seafood will be taxed at 25%.
- •The Canadian government will add a C$7.5 billion package to support businesses and workers during the dispute.
Canada announces counter-tariffs covering roughly $20 billion of products
Canada has followed through on the counter-tariff announcement it promised over the weekend, unveiling retaliatory measures covering roughly $20 billion of products. The total value of $19.94 billion essentially meets the dollar-for-dollar response that Prime Minister Mark Carney had pledged. The move continues the tit-for-tat pattern that has defined Canada-US trade relations this year, with Ottawa matching US tariff actions with equivalent counter-measures in earlier rounds of the dispute.
Effective September 7, the counter-tariffs will apply to around 700 products, at rates of 15%, 25% or 50%. The measures come in response to US tariffs that took effect on Saturday. The start date gives affected importers a window to review the published product list and adjust sourcing decisions before the duties take effect.
Alongside the tariff schedule, the Canadian government will introduce a C$7.5 billion package to support businesses and workers. The package includes support for small and medium-sized businesses, a stream of funding cash and support for workers, mirroring Ottawa's earlier practice of pairing counter-tariffs with domestic relief during previous rounds of US tariff action.
The tariff rates are differentiated by product category:
- 50% tariffs will apply to steel, aluminum, furniture and clothing.
- 25% tariffs will apply to cheese, appliances and some seafood.
- 15% tariffs will apply to electronics and tools.
Canada's move marks the promised retaliation against the new US measures, with the September 7 start date setting the timeline for when the roughly 700 affected products will face the new duties. The breadth of the targeted categories, from industrial metals to consumer staples like cheese and clothing, reaches across a bilateral trading relationship that moves roughly $1 trillion in goods and services annually, and the C$7.5 billion support package is sized to carry Canadian businesses and workers through the dispute.
Source: ForexLive
