According to the Canadian Government’s press office, following the US decision to impose a 50 per cent tariff on $27.6 billion worth of Canadian goods, which came into force on 22 August, Finance Minister François-Philippe Champagne confirmed today that Canada will respond to the new US tariffs ‘dollar for dollar’, ‘rate for rate’, by imposing additional Canadian tariffs on US goods.
The government expects this ‘targeted response’ to protect Canadian workers, farmers, fishermen, families and businesses, safeguard sectors affected by US tariffs, and help Canadian producers compete with US goods in the Canadian market.
It is reported that, from 8 September, Canada will impose counter-duties of 15, 25 and 50 per cent on goods – with the rate for each good matching the corresponding US rate.
According to the government, the Canadian counter-duties will apply to goods worth $27.6 billion imported from the US and will focus on sectors such as the metal industry, the dairy industry, household appliances, agricultural machinery, the pulp and paper industry and electronics, which have been hardest hit by US tariffs.
Goods subject to 50 per cent counter-tariffs include steel and aluminium products, which were previously subject only to a 25 per cent counter-tariff, as well as furniture, clothing and workwear. The 25 per cent rate applies to household appliances, dairy products such as cheese, fish and seafood, as well as certain steel and aluminium derivatives.
In addition, the government is also introducing a package of new and enhanced measures worth 7.5 billion dollars, which will provide swift, simple and flexible support for Canadian workers and businesses, complementing the nearly $25 billion in support the government has provided since the introduction of the unjustified US tariffs.
In July, US President Donald Trump signed three executive orders imposing a 50 per cent tariff on a wide range of Canadian goods – from wine and ice hockey sticks to cement, building materials and electrical equipment. These tariffs came into force a few days ago.