Carney strikes back: Canada retaliates against US tariffs with duties on $20 billion of goods

Canada retaliated against US tariffs on Tuesday, imposing duties on about $20 billion worth of American goods, including steel, dairy products, appliances, and farm equipment.

The tariffs will take effect from September 8 and range from 15% to 50%, The Associated Press reported on Tuesday. They cover more than 700 products, including seafood, cheese, clothing, cosmetics, and toilet paper.

The move follows US President Donald Trump's decision over the weekend to impose 50% tariffs on Canadian goods after trade negotiations between the two countries collapsed.

After the US imposed tariffs, Canadian Prime Minister Mark Carney had said Ottawa would match tariffs dollar to dollar.

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Steel And Aluminum Face Highest Tariffs

Canada will match the corresponding US tariff rate on many products. The largest share of the new measures will affect steel and aluminum.

Some steel and aluminum products, along with furniture and clothing, will face tariffs of 50%.

Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25% tariffs.

The new measures will double tariffs on many American products from 25% to 50%. Existing Canadian counter-tariffs on US autos will remain in place.

AP reported that Canadian officials said the goal was not to raise revenue but to protect Canadian companies and reduce imports from the United States.

US steel imports have already fallen 30% since Canada imposed a 25% tariff. They expect the new 50% rate to reduce imports further.

Canada also announced a C$7.5 billion ($5.4 billion) support package for workers and businesses affected by the dispute.

Carney Says Canada Won't Be Subordinate

Canadian Prime Minister Carney said on Monday that Canada may need to move away from matching US tariffs dollar for dollar and instead use more targeted measures to protect Canadian workers and businesses.

"An attitude at the negotiation table that Canada is a subsidiary of the United States" is "not something we're going to accept," Carney said.

Carney said the US demands during the failed negotiations showed that Washington wanted to weaken Canada's major industries.

"We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel, and aluminum," Carney said in French. "That was one of the main reasons we said no. It was a bad deal."

US negotiators also raised French-language content on streaming platforms and French-language labelling rules as trade irritants, Carney said.

He rejected the idea that those protections could be negotiated.

"For the Americans, questions about the French language, Quebec culture, francophone culture and Canadian culture are irritants. Here in Quebec, here in Canada, they are rights," Carney said.

Trump rejected Carney's account in a social media post on Tuesday.

"I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing. This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!"

Trump Threatens More Tariffs

Trump has warned Canada against resisting US demands.

On Monday, he told Canadian leaders to "fall in line" or face consequences "far WORSE" than the existing tariffs.

He also threatened new 50% tariffs on Canadian vehicles, auto parts, and steel.

On Tuesday, Trump said the United States was giving "serious consideration" to renaming Lake Ontario "Lake America" in a dispute with Ontario Premier Doug Ford.

The proposal would echo Trump's decision last year to rename the Gulf of Mexico the Gulf of America by executive order.