Canada hits back with retaliatory tariffs up to 50% on U.S. goods

Canada imposed retaliatory tariffs Tuesday on about $20 billion of U.S. goods, including steel, dairy, appliances, and farm equipment, with some duties reaching 50%, sharply escalating the trade war between the neighbors. The new tariffs, effective Sept. 8, target over 700 products at rates of 15%, 25%, and 50%, extending to everyday items like seafood, cheese, clothing, and toilet paper. Canadian officials said the measures aim to protect domestic industries and reduce U.S. imports, not raise revenue, following Washington's 50% tariffs imposed over the weekend after trade talks collapsed. The dispute threatens one of the world's largest trading relationships, with deeply integrated supply chains across autos, energy, and manufacturing. President Trump intensified tensions by threatening new 50% tariffs on Canadian vehicles and suggesting renaming Lake Ontario "Lake America," while Canadian ministers urged citizens to buy domestic goods.