Canada hits US with retaliatory tariffs on over 700 products

Canada has responded to the Trump administration with retaliatory tariffs targeting more than 700 products.

Through these measures, Ottawa dealt the heaviest blow in particular to the American steel and aluminium sectors.

Announced on Tuesday, these retaliatory measures come in response to new 50% tariffs imposed by the US on Canadian imports after negotiations between the two nations collapsed last week.

According to statements made to reporters by a senior government official, the objective of the Canadian government is not to generate revenue from the tariffed goods.

Speaking to discuss the new retaliatory measures, the official noted that the primary purpose is to protect the domestic market share of Canadian companies affected by the new US tariffs.

The tariffs stand at rates of 15%, 25%, and 50%, targeting a range of US exports to Canada that primarily include steel and aluminium products, fishing rods, gym equipment, seafood, household appliances, and apparel. These tariffs will take effect on 8 September.

Ottawa is responding to a new 50% tariff imposed by the US last week on approximately $20 billion in imports from Canada after negotiators failed to reach an agreement to avert the new levies.

Both American and Canadian officials blamed each other for making last-minute demands that ultimately scuppered the deal.

US officials alleged that Canada covertly introduced demands for lower tariffs on heavy trucks.

Prime Minister Mark Carney, however, pointed to a power struggle between US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick as responsible for altering the terms of an agreement that went from acceptable to unrecognisable within 72 hours.

Implemented for the first time under Section 338 of the Smoot-Hawley Tariff Act, the US tariffs were intended to punish Canada over its dairy retail policies, retaliatory car tariffs directed against Section 232 duties, and provincial bans on the sale of American liquor, as well as to force a breakthrough in the impasse surrounding bilateral negotiations on reviewing the United States-Mexico-Canada Agreement.

Canada is also allocating 7.5 billion Canadian dollars in new funding for domestic support programmes to cushion the blow of the new tariffs for small and medium-sized Canadian enterprises, in addition to approximately 25 billion Canadian dollars Ottawa has set aside over the past 18 months for affected workers.

Sharp reaction from Ontario Premier Ford

Doug Ford, Premier of Canada’s largest province, Ontario, used harsh words regarding US President Donald Trump.

Stating, “I don’t answer to a dictator like Trump,” Ford characterised the President as a “loser” and the “king of bankruptcies,” adding that he “can kiss my ass” and asserting that Trump was in fact imposing tariffs on his own people.

Ford had remarked: “I don’t answer to a dictator like President Trump, a bully like President Trump. I’m not taking any advice from a guy who’s the king of bankruptcies.”

Ford concluded his remarks by stating: “Let’s be blunt, I don’t like the guy; it’s that simple.”

Embarking on a subsequent media tour across American networks, Ford adopted a more conciliatory tone. Speaking first to CNN, the premier acknowledged that “the temperature got a little high and it got personal,” and said:

“I want to make a deal. A good deal for the American people, a good deal for Canadians. We are the two greatest countries in the world, we are each other’s number one customers, and it is time to get back to the negotiating table.”

Trump, in a post on Truth Social, had described Ford as “the less charismatic, less intelligent, and overall unimpressive brother of the late, great Rob Ford.”

Discussing Trump’s trade strategy regarding the US’s northern neighbour with CBS Chief Washington Correspondent Major Garrett, Ford later said: “He treats us as if we were Communist China. We are the closest friends and allies the US has in the entire world, and I want to keep it that way.”

Commenting on Trump’s proposal to rename Lake Ontario as “Lake America”, Ford said: “When he comes up with ideas like that, I can’t help but laugh. Here in Canada, it will always remain Lake Ontario. … Whether he wants to call it Lake America or Lake Trump, whatever name he wants to give it, that is his right.”

In his statement to CNN, he had said:

“I think it’s complete rhetoric. When President Trump wants to attack our sovereignty, our businesses in Ontario, and our people, I cannot remain silent. My job is to protect Ontario and protect Canada.”

‘US constantly changes the rules’

Asserting that Washington “constantly changes the rules,” Ford said: “We thought we were going to reach a deal, but they changed it repeatedly.”

Asked whether the US had introduced any last-minute demands, Trump told CNN: “that sounds like me.”

Should the trade agreement fail to enter into force, Ford argued that both nations would face hardship, particularly in sectors with heavy cross-border commerce such as automobile manufacturing.

In the past, he had also raised the prospect of imposing a surcharge on electricity sent from Ontario to the US.

“If you attack your largest customer… the outcome won’t be very good,” the premier said.

Ford acknowledged that Canadians would also bear the cost of the trade war. Pointing to the $40 trillion US national debt, however, he argued that Canada, which has pledged assistance to affected businesses and workers, possesses the strength to weather the storm.

Ford said: “There will be pain on both sides of the border. This will affect Americans just as much as it affects Canadians. The only difference is that we have the fiscal stability to support our businesses, and we are diversifying trade around the world.”

A French-language intervention by Trump in Quebec?

Meanwhile, another point of friction amidst the trade war appears to have been the French language.

On Saturday, Canadian Prime Minister Mark Carney lamented what he described as “threats to the French language” and “Quebec culture,” telling reporters in French that these were “unacceptable” and had contributed to “bringing an end to this phase of negotiations.”

On Tuesday morning, amid ongoing mutual recriminations over responsibility for the trade war between the two nations, Donald Trump denied allegations that the White House had attempted to interfere with the French spoken in Quebec.

Trump wrote: “I would never interfere with Canadians speaking French! In fact, I never even thought of doing such a stupid thing,” and continued:

“This lie was concocted by a weak and ineffective prime minister in an effort to regain political support he has completely lost among the people of Quebec. I love French Canadians!”

Ahead of the elections to be held in Quebec in October, White House officials argue that Carney has exaggerated the French-language issue.

In an interview aired on CNBC on Monday, Trump’s Trade Representative Jamieson Greer described the accusations as a “ludicrous and fabricated story.”

Greer said the dispute arose from a rule that “forces American tech companies to hand over a percentage of their earnings to their competitors in Canada.”

Canada’s call on other US allies to ‘wake up’

Canadians believe that Carney’s remarks calling on “middle powers” to unite during his speech at this year’s World Economic Forum were not made in vain.

A Canadian official with knowledge of the trade talks, speaking to Politico, said the 50% tariffs imposed by the US president last week on $20 billion in Canadian goods ought to serve as a warning to Ottawa’s allies.

Noting that other nations were attempting to appease Trump, the official said that even Canada, which stands to lose the most given how tightly intertwined it is with the US economically and geographically, had stepped forward and “shown some pride.”

In a statement on Monday, Carney said: “This autumn, we will begin intensive negotiations to establish a much stronger and deeper economic and security partnership with the European Union, the world’s second-largest economy. We can provide such unique access because we can be trusted.”

British Columbia Premier David Eby said: “Frankly, I think other countries are watching the measures Canada has taken, and hopefully, I hope, they will follow this example. At some point, the rest of the world will say ‘enough is enough.’”

EU and UK cautious

European Parliament Committee on International Trade Chair Bernd Lange immediately voiced solidarity with Canada.

However, the European Commission, EU leaders, and the United Kingdom have refrained from publicly taking sides.

Behind the scenes, German Chancellor Friedrich Merz met with Carney on Monday.

Asked whether the EU would stand with Canada following Trump’s tariff threats, deputy chief spokesperson Arianna Podesta stated on Tuesday: “The US and Canada are important trading partners for the European Union, and of course, we continue to work in close cooperation with both, aiming to preserve stability and predictability in both transatlantic and global trade.”

The UK also appears unlikely to join a collective resistance against Trump. Head of Trade Policy at the British Chambers of Commerce William Bain said, “Both the US and Canada rank among the UK’s most important trade and investment partners,” adding that “no one stands to gain from an escalation of this trade dispute.”

Trump’s threats to levy new tariffs on the UK over its Digital Services Tax have also prompted Prime Minister Andy Burnham’s government to announce that it remains “open to discussing US concerns” regarding the revenue collected from US tech companies.