Canada hits back with $20bn tariffs on US goods

Canada announced retaliatory tariffs on about C$27.6 billion ($19.9 billion) of US goods, escalating the trade war with President Donald Trump. The new duties match US tariffs dollar-for-dollar and rate-for-rate. Tariffs of 15%, 25%, and 50% take effect September 8, targeting over 700 American product categories including steel, aluminium, dairy, appliances, and furniture. Finance Minister François-Philippe Champagne said Ottawa rejected US demands that asked too much while offering too little. The retaliation follows Washington's 50% tariffs on Canadian goods effective August 22 after negotiations collapsed. Canada also announced a C$7.5 billion support package for affected workers and businesses, while Trump threatens 50% auto tariffs from January 2027.