Canada’s retaliatory tariffs of 15 percent, 25 percent or 50 percent are targeting a wide range of industries including steel, railway construction materials, frozen and fresh fish, dairy, electronics, as well consumer goods like dishwashers and washing machines. Several categories of beauty products will be subject to a 50% tariff, including perfumes and toilet waters, lip and eye makeup, hair care preparations and manicure and pedicure products.
The retaliatory tariffs match US levels, said Canada’s Finance Minister Francois-Philippe Champagne. Ottawa’s retaliation will take effect September 8, a timeframe earlier outlined by Prime Minister Mark Carney after US President Donald Trump’s 50-percent duties came into place on Saturday, August. 22
Canadian Prime Minister Mark Carney decided on Friday, August 21, to suspend trade negotiations with the United States, rejecting what Ottawa described as "unfair" conditions sought by the White House.
In response, Washington began imposing new tariffs on Saturday on US$20 billion worth of Canadian imports, including cement, alcohol, honey and agricultural products, as well as certain color cosmetics, perfumes, fashion items and even hockey sticks.
Tit-for-tat
Trump’s latest tariffs hit about US$20 billion in Canadian goods — or 5.5 percent of its exports to the United States — after trade negotiations collapsed at the eleventh hour.
Under Canada’s planned response, US steel and aluminum products previously subject to a 25-percent duty will soon face 50-percent tariffs. Goods facing 25-percent tariffs include appliances, dairy products like cheese, as well as certain steel and aluminum derivative products. A small category will see a 15-percent duty, including electric equipment and tools.
But analysts warn of tit-for-tat escalation.
Already on Monday, Trump pledged to double tariffs on Canadian autos starting 2027, up to 50 percent from the current 25 percent for non-US content.
Ontario Premier Doug Ford criticized Trump’s threat, saying he could "kiss my ass" and threatening an electricity export surcharge.
Trump lashed out at Ford and also referred to Carney as a "governor," re-upping his inflammatory push for Canada to become the 51st US state.
Highlighting the animosity, Trump said Tuesday he was considering renaming Lake Ontario as "Lake America."
The fresh US tariffs do not exempt products under the US-Mexico-Canada free trade agreement. They raise the US effective tariff rate on Canadian exports to 6.9 percent from 5.1 percent, Oxford Economics estimates. Tariffs on plastics, electrical machinery, and wood and paper products contribute most to the increase.
"Manufacturers in Quebec, New Brunswick, and Ontario will be affected the most," Oxford Economics said.
Threats to culture
The exchanges drew some concern in the United States. Ethan Johnson, 25, who runs a start-up, told AFP: "The economics and the math behind it do not make sense." But 29-year-old electrician Lucas Feser trusts the Trump administration "to set up a harder, better deal."
Carney previously said US negotiators sought restrictions on Canadian trade deals with other countries at the last minute.
US officials made unacceptable "threats" to the French language and "Quebec culture" too, he added, referring to eastern Canada’s French-speaking province.
Trump pushed back Tuesday, saying on Truth Social that he would "never interfere with Canadians speaking French." He accused Carney of lying for political support.
The United States is Canada’s biggest trading partner. Canadian exports to its neighbor represent 70 percent of its overall total. Canada is the second-biggest US trading partner in goods this year behind Mexico.
Polling released Sunday by the Angus Reid Institute showed Canadians broadly support Carney’s move to walk away from talks, but some fear economic repercussions.
