Canada hits back with tariffs on $20B in US goods

Canada imposed retaliatory tariffs on approximately $20 billion worth of American goods, including steel, dairy products, appliances, and farm equipment, escalating the trade war between the two nations. The move threatens one of the world's largest trading relationships and could raise costs for U.S. businesses and consumers ahead of the midterm elections. The new tariffs, effective Sept. 8, range from 15% to 50% and extend to everyday items like seafood, cheese, clothing, cosmetics, and toilet paper. Canadian officials said the measures aim to protect domestic industries and reduce U.S. imports, with the largest share targeting steel and aluminum. A $7.5 billion Canadian support package for affected workers and businesses was also announced. The retaliation follows U.S. tariffs imposed over the weekend after trade negotiations collapsed. President Trump intensified the dispute by threatening new 50% tariffs on Canadian vehicles and parts, and suggesting renaming Lake Ontario "Lake America." Canada and the U.S. have deeply integrated supply chains, making a prolonged fight potentially costly for both sides.