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Canada Escalates Trade War With $20B US Tariffs

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Canada has introduced retaliatory tariffs on roughly $20 billion of American goods, alongside new support for businesses and workers, as Washington and Ottawa move further into a trade dispute between the two countries.

The measures, announced on Tuesday, match the latest U.S. duties on a dollar-for-dollar basis. Canada said the counter-tariffs will apply from September 8 and will cover imports across around 700 product categories.

Tariffs Begin On September 8

Canada’s retaliation comes after the Trump administration imposed new 50% tariffs on $20 billion of Canadian imports, effective from Saturday, following talks between the two countries that ended without agreement.

Canada’s new duties run at three rates, depending on the product. The government said imports subject to the package will face 15%, 25% or 50% tariffs.

Finance Minister François-Philippe Champagne said the response would be paired with support aimed at protecting workers, farmers, families and firms. He said Canada would apply counter-tariffs “dollar-for-dollar” and provide a “multi-billion” assistance package in parallel.

The White House and the Office of the U.S. Trade Representative did not immediately respond to a request for comment.

Scope Of Goods And Sector Impact

Canada said the counter-tariffs were calculated using 2024 trade figures. The affected goods account for nearly 4.5% of Canada’s imports from the United States.

The Canadian measures include a 50% tariff rate on steel, aluminium, furniture and clothing. A 25% rate will apply to cheese, appliances and some seafood, while a 15% rate covers electronics and tools.


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Industry analysis suggests the U.S. tariffs are narrower in relative terms, affecting about 5% of Canada’s exports to the United States. However, trade analysts said the impact could be concentrated in sectors already under pressure, including wood products such as kitchen cabinet manufacturers.

Canada’s list of retaliatory items also includes prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper products, carpets and clothing.

Political Pressure Cited By Ministers

Industry Minister Mélanie Joly said the Canadian tariffs were designed mainly to protect domestic businesses, but also to increase leverage ahead of U.S. midterm elections on November 3.

Joly said Canadian retailers should ensure competitors do not access the Canadian market “in a better way than” their own products. She added that some of the targeted goods were selected to apply pressure to states in the United States.

C$7.5 Billion Support Package

Alongside the tariffs, Canada unveiled a C$7.5 billion package of measures intended to support small and medium-sized businesses, with funding focused on improving company cash flow and backing workers affected by the new duties.

A federal lender, the Business Development Bank of Canada, will provide part of the assistance, including interest-free loans ranging from C$2.5 million to C$5 million.

Joly said businesses would not be required to repay for 36 months, a period that would extend through to the end of the Trump administration’s term.

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26 August 2026


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  • gargamon
    gargamon

    Canada isn't escalating the trade war. It's reacting to the US escalation. Clearly the fault is south of the border.

  • More countries need to stand up to the whining bully and his lackeys. Canada has now started trading with 20 different countries, including China as the US cannot be trusted with anything they say or

  • By the time Trump's finished his term in c18 months there''ll be not much left of Usofan friends & allies, and rather less of its economy. Well, apart from Putin (if he's still alive) and Kim Jo

Posted Images

I don't see Potash mentioned, that would sting big time for rural USA and trickling into grocery stores. There's always time to get back to the table .....

  • Popular Post

Canada isn't escalating the trade war. It's reacting to the US escalation. Clearly the fault is south of the border.

  • Popular Post

More countries need to stand up to the whining bully and his lackeys.

Canada has now started trading with 20 different countries, including China as the US cannot be trusted with anything they say or agree to. Watch how Trump will buckle when he realizes that the US will suffer greatly without the Canadian imports.

  • Popular Post

By the time Trump's finished his term in c18 months there''ll be not much left of Usofan friends & allies, and rather less of its economy.

Well, apart from Putin (if he's still alive) and Kim Jong Ill (if he hasn't blown himself up in a mad moment).

By comparison Carney is the very model of a modern major general.

  • Popular Post
1 hour ago, gargamon said:

Canada isn't escalating the trade war. It's reacting to the US escalation. Clearly the fault is south of the border.

If Trump wouldn't lose his marbles, there would be no trade war and thus no escalation

  • Popular Post

60% of crude oil the USA imports comes from Canada;

80% of potash the USA imports comes from Canada;

Ontario supplies 8% of electricity to New York grid system;

33% of lumber used for US construction is imported from Canada;

88% of natural gas the USA imports comes from Canada.

But, not for long...

2 hours ago, CANSIAM said:

I don't see Potash mentioned, that would sting big time for rural USA and trickling into grocery stores. There's always time to get back to the table .....

Canadian potash fertilizer remains explicitly exempt from Trump's Section 338 import tariffs and accordingly Canada's retaliatory counter-tariffs against U.S. goods also exclude potash fertilizer.

Honestly if a couple of planes crashed into buildings today the outrage would be much less and maybe cheers of “karma” heard from around the world!

4 minutes ago, Brettoj said:

Honestly if a couple of planes crashed into buildings today the outrage would be much less and maybe cheers of “karma” heard from around the world!

The only cheers would be from traitorous American leftists.

  • Popular Post

Best response to USA bullying I’ve heard so far is from the Canadian minister Ford. There’s a lot of real estate on my ass that he can kiss.

Canada can't win a trade war with the US. Carnival knows his numbers well. It's a stall tactic. Carnie is following the WEF agenda and hoping to stall until the mid-terms so perhaps he can get a better deal. Why did he hire Maia Johnson?

43 minutes ago, gargamon said:

60% of crude oil the USA imports comes from Canada;

80% of potash the USA imports comes from Canada;

Ontario supplies 8% of electricity to New York grid system;

33% of lumber used for US construction is imported from Canada;

88% of natural gas the USA imports comes from Canada.

But, not for long...

Canada could apply export tariffs on these items.

1 hour ago, Srikcir said:

Canadian potash fertilizer remains explicitly exempt from Trump's Section 338 import tariffs and accordingly Canada's retaliatory counter-tariffs against U.S. goods also exclude potash fertilizer.

Who's following Laws and agreements these days ?......

1 hour ago, gargamon said:

60% of crude oil the USA imports comes from Canada;

80% of potash the USA imports comes from Canada;

Ontario supplies 8% of electricity to New York grid system;

33% of lumber used for US construction is imported from Canada;

88% of natural gas the USA imports comes from Canada.

But, not for long...

The second light crude pipeline to the West coast deep water terminal in the works, 1.2m bpd capacity....China, Japan, S Korea, Taiwan, India, even Brunei eager to sign papers.......

  • Popular Post

The Canadian government begins their response to Trump’s tariffs by recognizing that they’re gathered on “indigenous” land. Yeah I don’t think this will be much of a fight.

Canada is ruled by a banker and his flunkies.

It is thus very appropriate that Carney should "go to war" by traipsing, cap in hand, to the world's bankers, begging them to fund his big "projects" that might, a decade or more down the road, provide a few jobs here and there in Canada.

The only winner in all of this will be the Province of Quebec (already being promised lots of banker-financed "goodies"). When Trump and Carney have long exited the scene, the French will be laughing all the way to the banks for years on end (unless of course they are dumb enough to vote themselves out of the Canadian federation. After which they will invite massive American investment by some future administration).

Interesting commentary.

Carney walked out of U.S. trade talks at one minute to midnight and called it a war. It isn’t about tariffs. It’s a midterm operation, and Scott Bessent is fighting the war Carney doesn’t want you to notice.

  • Popular Post
5 hours ago, gargamon said:

Canada isn't escalating the trade war. It's reacting to the US escalation. Clearly the fault is south of the border.

It's outrageous on the part of Canada - all the USA demanded was to control Canada's foreign trade, control the extraction of it's (Canada's) rare earth and minerals, and to end the hugely provocative and culturally insulting use of French as one of the countries two languages. Because Canada would not do that then the USA was forced to impose tariffs. Now Canada has completely overreacted; I mean, anyone would think that they were a separate country!

3 hours ago, gargamon said:

60% of crude oil the USA imports comes from Canada;

The US could backfill that with crude from Iran and Russia?

🥸

Need to add this. That is an extraordinary claim. Carney is no longer saying America objected to specific Canadian regulations. He is telling Quebecers that Americans see the French language and Francophone culture themselves as “irritants.”

Show the demand. Show the negotiating text. Show where Washington asked Canada to surrender French-language rights.


Because without that evidence, this looks less like diplomacy and more like manufacturing a cultural grievance to sell a failed trade negotiation.

By the way, is he drinking from a PLASTIC bottle???

claim.jpg

Edited by FinChin67

  • Popular Post
3 hours ago, JoeRan said:

More countries need to stand up to the whining bully and his lackeys.

Canada has now started trading with 20 different countries, including China as the US cannot be trusted with anything they say or agree to. Watch how Trump will buckle when he realizes that the US will suffer greatly without the Canadian imports.

As a student of history, I recall when Napoleon, instituting his Continental System boycotted British trade. Result was Britian turning trade attention to developing global markets thus the sooner British Empire. The blue trump ignorant, incompetent, corrupt, in his own words, "does not have the cards. He and his minions still hold on to the idea that they can dictate global trade due to dependance on USA trade. Strong, yes but this is not the post WW II global economy. Again, an administration dominated by ignorance, incompetence, corruption. The results are too slow coming but are inevitable.

23 minutes ago, FinChin67 said:

Need to add this. That is an extraordinary claim. Carney is no longer saying America objected to specific Canadian regulations. He is telling Quebecers that Americans see the French language and Francophone culture themselves as “irritants.”

Show the demand. Show the negotiating text. Show where Washington asked Canada to surrender French-language rights.


Because without that evidence, this looks less like diplomacy and more like manufacturing a cultural grievance to sell a failed trade negotiation.

By the way, is he drinking from a PLASTIC bottle???

claim.jpg

Merde!

1 hour ago, FinChin67 said:

Interesting commentary.

Carney walked out of U.S. trade talks at one minute to midnight and called it a war. It isn’t about tariffs. It’s a midterm operation, and Scott Bessent is fighting the war Carney doesn’t want you to notice.

MAGA BS. Who's the old woman anyway? What's her history?

Scott bessent? You mean this guy? Which one is he anyway?

bafkreihjwekijcdvtmb4a3e3opzfz5phgfwarahrotr4m2lddvwaq4lsty.webp

Edited by gargamon

First a little gem. CNBC, and specifically Joe Kernen in a recent segment, cited OECD projections that Canada ranks last (38th out of 38 OECD countries) for long-term GDP per capita growth through 2060. Googled that and indeed OECD forecasts from earlier analyses (around 2021 onward) projected Canada’s average annual real GDP per capita growth at the bottom of the OECD pack for both the 2020–2030 and 2030–2060 periods.

So first day in and it costs cool $7.5 billion. Canada is going to match US tariffs dollar of dollar and make $7.5B available for businesses and workers affected by US tariffs. So instead of cutting taxes to make Canada a more competitive place to do business in, they're hiking taxes and handing out billions.

So how Carnage invests himself? Is he pro Trump or pro Canada when it comes to his own money?

July 2025 Ethics Commissioner filing (assets dumped into a blind trust): roughly 567 companies in his third-party managed account.

United States: ~515 companies — about 91%

Canada: 3 or 4 companies — less than 1%

Everywhere else: the scraps

He also had millions in Brookfield stock options (the firm that quietly shifted its asset-management HQ to New York while he was chair) plus exposure to Stripe, a U.S. payments giant. All of it parked in U.S.-heavy holdings before the trust kicked in.

Seems the toxic, dangerous and “fascist” America under Trump is getting all the Canada’s own progressive prime ministers personal portfolio.

6 hours ago, CANSIAM said:

I don't see Potash mentioned, that would sting big time for rural USA and trickling into grocery stores. There's always time to get back to the table .....

No point. The rest of the world has understood that 'negotiating' with Trump is about as useful as with Putin. And for essentially the same reasons.

1 hour ago, FinChin67 said:

Interesting commentary.

Carney walked out of U.S. trade talks at one minute to midnight and called it a war. It isn’t about tariffs. It’s a midterm operation, and Scott Bessent is fighting the war Carney doesn’t want you to notice.

If it’s about a mid-term operation, I congratulate Canada for such a brilliant plan even though it was Trump who initiated the tariff war. America and the world will thank Canada for a blue wave on both House. Then impeached that incompetent corrupt buffoon and throw the book at him for all his crimes and lock him up for good. The world is safer without the dirty paws of the demented lunatic.

Posts with derogatory nicknames, intentional misspellings, or personal remarks will be removed. Spell names correctly for all sides of the debate.

4 hours ago, Srikcir said:

Canadian potash fertilizer remains explicitly exempt from Trump's Section 338 import tariffs and accordingly Canada's retaliatory counter-tariffs against U.S. goods also exclude potash fertilizer.

Just because the Trump didn't slap import duties on potash means nothing to what Canada can do. Canada can raise the price of Potash for export to the US. The reason Trump didn't include potash, or oil, or gas, or electricity from Canada is because the US NEEDS those commodities. But that doesn't stop Canada hiking the price - or turning off the supply. So far it hasn't done that because it would be a major escalation and a propaganda coup for Trump. Carney is targeting red states and things they need. Makes sense.

18 minutes ago, Eric Loh said:

If it’s about a mid-term operation, I congratulate Canada for such a brilliant plan even though it was Trump who initiated the tariff war. America and the world will thank Canada for a blue wave on both House. Then impeached that incompetent corrupt buffoon and throw the book at him for all his crimes and lock him up for good. The world is safer without the dirty paws of the demented lunatic.

They can join communist China. That's Carnage's dream. Just wondering why his own money is invested in US...


Oh, and Canadian taxpayers can have a party! The Canadian government is going to borrow $7.5 billion (from taxpayers) to help companies impacted by the 50% US tariff increase.

I predict companies will take the money and run. Many will go bankrupt, or like Stellantis, take the money and use it to move to the USA. Companies will be able to get up to a $5 million, no interest loan. Companies don't have to make payments on for 3 years.

Of course, there's no corruption & kickbacks when this money is allocated...


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