Canada Hits Back with Tariffs Amid Trade Spat with US

Canada has taken a major step to protect its economy by announcing retaliatory tariffs on the US in response to Washington's decision to impose 50% tariffs on Canadian goods. The new levies, set to take effect on September 8, will target imports from the US valued at $27.6 billion (approximately €17 billion), matching the impact of the US tariffs. According to Canadian Finance Minister François-Philippe Champagne, the measures aim to 'protect workers, farmers, fishermen, families, and businesses' against what Ottawa considers 'unfair' levies.

The list of affected products includes over 800 categories, ranging from hand tools and air conditioning units to various types of cheese and personal hygiene products. A 15% tariff will be applied to goods such as harvesters and industrial robots, while a 25% tariff will target fish, shellfish, and crustaceans from the US. The highest rate of 50% will be imposed on imports of milk and cream, honey and molasses, and men's and women's clothing.

Canada has also announced an internal support package worth $7.5 billion (approximately €4.6 billion) to help affected sectors. The package includes investments in small and medium-sized enterprises, relaxation of requirements for public aid, and mechanisms to preserve employment in companies hit by the tariffs.