Canada on Tuesday announced retaliatory tariffs of up to 50% on more than 700 US products worth about $27.6 billion, escalating the trade war with the United States after negotiations between the two countries collapsed.The new tariffs will take effect on September 8 and will target a wide range of American goods, including fish, cheese, honey, cosmetics, clothing, household appliances, smartphones, motorcycles, steel and aluminium products.The tariffs will be imposed at rates of 15%, 25% and 50%, with the highest rate applying to several products, including certain dairy, cosmetics and lumber items. Canada will also raise tariffs on US steel and aluminium products from 25% to 50%, CBC news reported.Ottawa said the measures were aimed at products “most affected by US tariffs” and were designed to match the duties imposed by Washington in its latest round of tariffs.The move comes days after the Trump administration imposed 50% tariffs on roughly $20 billion worth of Canadian goods. The latest US duties, which took effect over the weekend, cover hundreds of products ranging from honey and alcoholic beverages to household goods and sports equipment.Canadian Prime Minister Mark Carney accused Washington of seeking to subordinate Canada. Carney said US demands during the failed trade negotiations showed that Americans wanted to “destroy our major industries”, including autos, steel and aluminium.Canada’s latest measures extend beyond industrial products, with everyday goods such as cheese, toilet paper, clothing, smartphones and household appliances among the targets.The trade tensions have continued to escalate, with Trump threatening further tariffs on Canadian vehicles, auto parts and steel. Trump said his administration would raise tariffs on Canadian cars, trucks, automotive parts and steel to 50% from January 1, 2027. Carney said the proposed auto tariffs would “gradually dismantle” Canada’s vehicle production industry.Trump also added another point of friction on Tuesday by saying the US was giving “serious consideration” to renaming Lake Ontario as “Lake America” amid his ongoing dispute with Ontario Premier Doug Ford.Ford has warned that Ontario could consider retaliatory measures, including restricting the supply of electricity and critical minerals to the US, if the trade conflict worsens.The escalating dispute threatens one of the world’s largest trading relationships, with deeply integrated supply chains across the automotive, energy, agriculture and manufacturing sectors.
