Canada hits back with new tariffs on U.S. goods

Canada announced retaliatory tariffs on U.S. goods Tuesday, escalating the trade war with Washington. Finance Minister François-Philippe Champagne said the measures would be "proportionate, targeted, and strategic," matching U.S. tariffs "dollar for dollar, rate for rate." Starting September 8, Canada will impose counter-tariffs of up to 15%, 25%, or 50% on C$27.6 billion of U.S. imports. This follows Saturday's implementation of heavy 50% U.S. tariffs affecting roughly C$28 billion of Canadian goods, after trade talks collapsed. Champagne also unveiled a C$7.5 billion aid package for workers and businesses, calling the U.S. conditions "economically untenable, unfair, and ultimately unacceptable." President Donald Trump threatened Monday to double tariffs on Canadian vehicles to 50% starting January 1, 2027, accusing Ottawa of "ripping off the United States" for years. Current U.S. auto tariffs stand at 25% for non-American content.