Canada Slaps Counter-Tariffs on Over 700 US Products Worth $19.9 Billion

The trade war between Canada and the United States has escalated as Ottawa announces retaliatory tariffs on over 700 US products worth $19.9 billion. The Canadian government said it would match dollar for dollar the new US duties imposed by President Donald Trump, which will range from 15 percent to 50 percent.

The counter-tariffs will target steel and aluminium, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics sectors, among others. The tariffs will take effect on September 8. To mitigate the financial risks caused by these new tariffs, a $5.42 billion funding package has been announced for small- and medium-sized businesses.

US President Trump imposed 50 percent tariffs on Canadian products worth $20 billion just days after announcing a deal. The US president also hurled insults at Canada, referring to Prime Minister Mark Carney as 'Governor Carney' and claiming that the US lost $60 billion annually to Canada for the last decade.

However, according to Statistics Canada, Canada maintains a trade surplus with the US of 9.9 billion Canadian dollars ($7.1 billion). The impact of these tariffs is expected to be felt by both US businesses and consumers, who may face higher prices on consumer goods imported from Canada due to Trump's 50 percent tariff.