Canada announced retaliatory tariffs of up to 50% on roughly 700 U.S. products, effective September 8, after trade talks with Washington collapsed last week. The move mirrors the value of Canadian exports hit by U.S. tariffs, with Ottawa doubling duties on U.S. steel and aluminum to 50% to go 'dollar for dollar' with American levies.
The breakdown followed Trump's brief postponement of 50% tariffs on Canadian goods, which then took effect after negotiations failed, with Canada accusing the U.S. of trying to destroy its industries. Trump has separately threatened to raise auto tariffs to 50% starting January 2027 and called the trade relationship 'not sustainable.'
The dispute has spilled into open personal insults between Trump and Ontario Premier Doug Ford, with Ford calling Trump a 'dictator' and Trump mocking Ford's charisma and suggesting renaming Lake Ontario. Canada's finance minister called the U.S. terms 'uneconomic, unfair, and ultimately unacceptable.'
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