August 26, 2026 | 03:27 pm
TEMPO.CO, Jakarta - Canada has announced retaliatory tariffs on more than 700 US products worth C$27.6 billion (US$19.9 billion), escalating a trade war with Washington after the United States imposed new tariffs on Canadian goods, as reported by The Guardian.
The Canadian government announced the measures on Tuesday, saying they would match the value of the latest US tariffs on Canadian exports on a “dollar-for-dollar” basis. Ottawa also unveiled a C$7.5 billion (US$5.4 billion) support package to help businesses and workers affected by the trade dispute.
The new tariffs will range from 15 percent to 50 percent and are scheduled to take effect on September 8.
The targeted products span several major industries, including steel and aluminum, dairy, household appliances, agricultural equipment, pulp and paper, plastics and electronics.
The list includes more than 700 products, ranging from hockey sticks and ornamental fish to toilet paper and smoked lobster. Most items will face tariffs of 25 percent or 50 percent, while a smaller group, including air-conditioning units and tool parts, will be subject to a 15 percent tariff.
In some sectors, including steel and aluminum, Canada will raise existing retaliatory tariffs from 25 percent to 50 percent to match the US rate. Other tariffs already imposed by Canada, including those on US automobiles, will remain in place, the government said.
Support for Canadian Businesses
According to Al Jazeera, Finance Minister François-Philippe Champagne said the measures were intended to protect Canadian workers, farmers, families and businesses from the impact of the trade dispute.
The government’s C$7.5 billion support package is primarily aimed at small and medium-sized businesses facing financial pressure from the new tariffs.
Ottawa said the package would help companies avoid layoffs, support workers seeking to upgrade their skills and provide greater flexibility in accessing employment insurance.
The latest support brings the total assistance announced by the Canadian government in response to trade disruptions over the past 18 months to more than C$20 billion.
Industry Minister Mélanie Joly also urged businesses and consumers to support Canadian-made products as part of the country’s response to the trade conflict.
US-Canada Trade War Escalates
Canada’s latest measures follow President Donald Trump’s decision to impose 50 percent tariffs on Canadian goods on Saturday, affecting about US$20 billion worth of imports.
The move came just days after Trump said the United States and Canada had reached a deal to avert higher tariffs. Trade negotiations subsequently broke down.
Trump also announced Monday that tariffs on Canadian automobiles would rise to 50 percent from January 1, doubling the existing rate.
The escalating dispute has also spilled into political rhetoric. Trump has repeatedly criticized Canadian Prime Minister Mark Carney and on Tuesday said he was considering renaming Lake Ontario “Lake America.”
Trump has also accused Canada of costing the United States billions of dollars annually through trade, while Canadian government data show Ottawa maintains a trade surplus with Washington.
The latest tariffs mark a further escalation in a trade conflict between the two closely integrated economies, with businesses on both sides facing higher costs and growing uncertainty.
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