Canada has announced retaliatory tariffs against American goods worth about $20 billion amid an escalating trade war. The duties extend well beyond industrial goods — hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper. Some items face tariffs as high as 50%, and a prolonged dispute could raise costs for American businesses and consumers less than 2.5 months before the midterm elections.
“We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” news agency AP quoted Finance Minister François-Philippe Champagne as saying.
The announcement came after the Trump administration imposed 50% tariffs on Canadian goods over the weekend following the collapse of trade negotiations. Prime Minister Mark Carney had accused Washington of trying to subordinate Canada and said US demands during the failed talks showed that Americans wanted to “destroy our major industries.”
Up to 50% tariff on American goods worth $20 billion
The new tariffs will hit about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment. But it won’t take effect until September 8 — giving the neighbours time to negotiate a way out.
“You’re at war when you get attacked. We got attacked,” Carney said over the weekend.
The populist premier of Ontario, Doug Ford, separately told The Associated Press on Monday that he was ready to escalate even further by cutting off his province’s shipments of electricity and critical minerals to the United States. Soon after, Trump declared his intention to hammer the Canadian auto industry with another set of import taxes if the Canadians don’t “fall in line.”
Trump eyes Lake Ontario
US President Donald Trump has also sparked outrage after floating plans to ‘rename’ Lake Ontario. The move is reminiscent of his earlier determination to rechristen the Gulf of Mexico as the ‘Gulf of America’ and highlights just how badly the previously warm relationship between Washington and Ottawa has sundered.
“The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don’t expect to do much business with Ontario any longer,” Trump posted Monday on Truth Social.
The White House followed later in the day by posting on social media a toy Lego map of the US labelling the Gulf of Mexico with Trump’s preferred name, Gulf of America. But Trump cannot force Canada or individual citizens on either side of the border to follow his preferred naming conventions, and Ontario remains a leading trade partner for many US states.
The US-Canada border stretches across the water between the northern and southern shores of Lake Ontario. The water body forms much of New York State’s coastline and separates Buffalo from Toronto. Ontario is Canada’s most populous province and the single largest export destination for more than a dozen US states.