Canada has unveiled plans to impose tariffs on a broad spectrum of major American sectors—including cosmetics, dairy, wood products, and outdoor equipment—in the coming weeks, striking back in a roughly “dollar-for-dollar” response to U.S. levies.
On Tuesday, Canada’s finance and industry ministers detailed the government’s “focused response” to what Ottawa deems unfair tariffs imposed by President Donald Trump on Canadian products, which took effect Saturday after trade negotiations collapsed late Friday.
The White House justified its move by invoking Section 338 of the Tariff Act of 1930, citing “discriminatory” Canadian trade policies, such as provincial bans on U.S. alcohol—a measure originally enacted in retaliation for tariffs on Canadian goods imposed last year.
Prime Minister Mark Carney had previously vowed a “dollar-for-dollar” countermeasure after the White House targeted approximately 5% of Canadian exports to the U.S.
The Canadian countermeasures apply to C$27.6 billion (£14.6 billion) in imports and take aim at strategic industries including steel, dairy, appliances, agricultural equipment, and pulp and paper.
The list released by Ottawa encompasses more than 700 items, with the majority facing tariffs of 25% or 50%. A smaller subset, including air conditioning units and tool parts, will be subject to a 15% levy. The duties take effect on September 8 and apply solely to goods originating from the United States.
Announcing the retaliatory package, Finance Minister François-Philippe Champagne declared the country united in the dispute, asserting that Canada remains “masters of our own home.”
Industry Minister Mélanie Joly urged businesses and consumers to prioritize Canadian-made products as part of a broader “resistance” effort in the escalating trade conflict.
“You have power,” she told the audience.
The government also pledged more than C$7 billion in support for businesses impacted by the latest tariffs, supplementing over C$20 billion in aid announced over the past 18 months.
Canada’s decision to retaliate signals that both nations have entrenched their positions in a trade war that threatens to inflict billions of dollars in economic damage.
Earlier on Tuesday, Trump indicated he was giving “serious consideration” to renaming Lake Ontario “Lake America”—echoing his decision to redesignate the Gulf of Mexico as the Gulf of America. Critics noted that Ontario, Canada’s most populous province, derives its name from the lake, not the reverse.
Trump’s focus on Ontario largely stems from his escalating feud with the province’s premier, Doug Ford, who has labeled the president a “loser” and the “king of bankruptcies” and told him to “kiss my ass.” Ford has also threatened to cut off electricity and rare earth mineral exports to the U.S.
Trump dismissed Ford as a “flunky” of “Governor Carney” and warned the “clowns to ‘fall in line’ or, the consequences for Canada will be far WORSE!”
Trump also addressed reports that his trade negotiators sought to weaken French-language protections, insisting he would “never interfere” with Canadians speaking French and dismissing the claims as a “lie … made up by a weak and ineffective Prime Minister in an attempt to gain political support.”
He later added: “I love French Canadians!”
