Canada announces equal retaliatory tariffs on over 700 goods from the United States and Canada

Ottawa, August 25 (Xinhua) -- The Canadian federal government announced on the 25th that it will impose retaliatory tariffs on over 700 US goods worth 27.6 billion Canadian dollars (approximately 20 billion US dollars), and launch a total of 7.5 billion Canadian dollars (approximately 5.4 billion US dollars) in business and worker assistance programs.

Canadian federal officials stated that the total amount of US goods affected by the retaliatory tariffs this time is equivalent to the value of the 50% tariffs imposed by the US on Canada, achieving "equal and reciprocal" countermeasures. The Canadian tariff countermeasures will officially come into effect on September 8th.

Canadian Finance Minister Shang Pengfei stated that the reciprocal tariffs and multi billion dollar comprehensive aid plan adopted by Canada will effectively protect domestic workers, farmers, families, and businesses.

According to the anti tariff list released by the Canadian Ministry of Finance, this targeted anti tariff mainly focuses on areas such as steel and aluminum, dairy products, household appliances, agricultural equipment, pulp and paper, plastics, and electronic products, with tax rates divided into three levels: 15%, 25%, and 50%. Among them, the tariffs on steel and aluminum products imported from the United States will increase from 25% to 50%; Dairy products such as cheese, fish, seafood, and some steel and aluminum derivatives will be subject to a 25% tariff; Other existing countermeasures, including tariffs on US cars, will also continue to be maintained.

In addition to countering tariffs, the Canadian government has also announced the launch of a $7.5 billion (approximately $5.4 billion) aid program, with a focus on supporting small and medium-sized enterprises affected by the trade war. In terms of labor protection, the government will expand the "Work Sharing Program" and "Worker Retention Subsidy" to help companies avoid layoffs, enable more employees to improve their skills or receive retraining, and increase flexibility in receiving unemployment insurance.

On July 20th, US President Trump signed multiple announcements imposing a 50% tariff on hundreds of specific goods imported from Canada, including red wine, hockey sticks, and cement, under Section 338 of the Smoot Hawley Tariff Act. The relevant measures came into effect on August 22, but did not involve Canadian automobiles, automotive parts, and steel products.

The US Canada trade negotiations recently failed to reach an agreement. On August 22, Carney announced that Canada will implement retaliatory tariffs of equal amount starting from September 8. On August 24th, Trump posted on social media that he would increase import tariffs on Canadian cars, auto parts, and steel products to 50% starting from January 1st, 2027.