Canada announces $20 bln retaliatory tariffs on US goods, unveils support measures

Canada on Tuesday announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of United States goods, matching dollar-for-dollar new duties imposed by Washington, and unveiled financial support for Canadian businesses and workers caught in the escalating ‌trade war.

The counter-tariffs ⁠take effect ⁠on U.S. goods from September 8 and will impose duties of 15%, 25% and 50% across 700 products imported from south of the border, a government statement said.

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In terms of financial support for affected workers and industries, Canada announced a C$7.5 billion ​package of new and enhanced measures including ⁠support for ‌small and medium-sized businesses, a stream for ​funding cash ​flows of companies, and support for workers who ⁠could be at risk due to the ​new tariffs. From Saturday, President Donald Trump's new ​50% tariffs across $20 billion of Canadian imports took effect after talks between the two countries to avert the tariffs collapsed. The new tit-for-tat tariffs mark a new low in the Canada-U.S. relationship.

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"Our dollar-for-dollar, rate for rate counter-tariffs as ‌well as a multi-billion dollar support package will protect workers, farmers, families, and businesses," Canada's Finance Minister Francois-Philippe ​Champagne said. The ​new tariffs ⁠are designed so that the impact on Canadian consumers and businesses is minimal and could still hit the U.S., a government official ​said. The 50% tariffs are on some important sectors such as steel, aluminum, furniture and clothing, 25% tariffs are on cheese, appliances and some seafood, while the 15% tariffs will be on electronics and tools, the official said.