Canada Hits Back With Retaliatory Tariffs on $20 Billion in U.S. Goods

[Financial News]  

Canada announced on the 25th local time that it would impose retaliatory tariffs on $20 billion worth of U.S. goods. The move follows through on Prime Minister Mark Carney's promised "dollar for dollar" response.
According to CNBC and other foreign media, the Canadian government decided to impose new tariffs on more than 700 U.S. products worth about $20 billion. The tariffs will take effect on April 8.
The measure is retaliation for U.S. President Donald Trump's decision, after negotiations collapsed, to impose a 50% tariff on imports worth $20 billion, ranging from Canadian wine to cement and hockey sticks.
Canada's retaliatory tariff rates range from at least 15% to as high as 50%. The list includes dairy products, seafood, home appliances, lumber, paper products, and clothing.
Canada also unveiled an additional $7.5 billion support package for companies and workers facing the impact of U.S. tariffs. It includes liquidity support for small and medium-sized businesses, financing for companies hit by tariffs, and expanded employment insurance programs for workers in affected industries.
At a morning news conference, Canadian Finance Minister François-Philippe Champagne said, "As the United States demanded too much and gave up very little, we made a choice." He added, "We chose Canada." In other words, Canada is starting a trade war while protecting its national interests instead of handing over all of its economic interests to the United States.
Canada said it would respond with a so-called "dollar for dollar, rate for rate" approach, matching the scale and tariff rates imposed by the United States.
Tariffs on U.S. steel and aluminum will be doubled from 25% to 50%. The tariffs on metals and lumber are retaliation for the United States' plan to impose 50% tariffs on Canadian steel, aluminum, lumber, and other products.
Furniture and clothing will also be subject to 50% tariffs.
Home appliances, dairy products, seafood, some steel and aluminum derivative products, and industrial tools will face tariffs of 25% and 15%, respectively.

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