Canada hits back with tariffs on $20B of U.S. goods as trade war escalates

Canada imposed retaliatory tariffs on approximately $20 billion of American goods Tuesday, escalating the trade war with the U.S. and threatening one of the world's largest trading relationships. The new duties target steel, dairy, appliances, and farm equipment, with some consumer goods facing tariffs as high as 50%. Finance Minister François-Philippe Champagne said Canada "did not choose this conflict," responding to U.S. tariffs imposed after trade negotiations collapsed. Prime Minister Mark Carney accused Washington of seeking to "destroy our major industries," while President Trump threatened further tariffs on vehicles and steel. Canada announced a $5.4 billion support package for affected workers and businesses.