Canada announces retaliatory tariffs - as trade war with US heats up

Canada has said it will impose new tariffs on US imports as a trade war between the neighbours heats up.

The Canadian government said the counter-tariffs take effect from 8 September on what it said was $20bn (£17.1bn) worth of US goods.

It will impose duties of 15%, 25% and 50% across 700 products, including steel and appliances, imported from south of the border, to match dollar-for-dollar new duties imposed by Washington.

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Everyday items like seafood, cheese, clothing, cosmetics and toilet paper will be impacted as one of the world's largest trading relationships is hit.

Vital manufacturing components: steel and aluminium will see their tariff rate double from 25% to 50%.

It comes after talks broke down between the sides last week, and the Trump administration implemented planned tariff increases on Canadian goods on Saturday, including alcohol, wood products and clothes.

Further tariff hikes on steel, cars and car parts were announced by Mr Trump on Monday, due to be introduced in January.

The impositions are likely to be costly for businesses and consumers in both the US and Canada, making goods cost more and sparking a round of inflation and possibly economic contraction.

Not just a trade war

A war of words had broken out between the countries.

Doug Ford, premier of Ontario, Canada's most populous province, threatened to cut off electricity and mineral supplies to the US on Monday.

Mr Ford said that Ontario powered 1.5 million homes and businesses in the US - and he warned that Mr Trump "better have a pack of batteries".

He added: "You won't get a grain of sand out of Ontario."

Mr Trump hit back on Tuesday, suggesting he could rename Lake Ontario as Lake America.

"I deal with many countries, and Canada is easily the most difficult and unreasonable. They feel entitled, but they are not a State, and will be entitled no longer!", Mr Trump said on Tuesday.

Canadian minister of finance François-Philippe Champagne described US demands as "uneconomic", "unfair" and
"unacceptable".

(c) Sky News 2026: Canada announces retaliatory tariffs - as trade war with US heats up