Canada hits back with tariffs on US goods, risking economic pain

Canada announced retaliatory tariffs on nearly 900 US products, effective September 8, following President Trump's 50% tariffs on Canadian goods. The measures target approximately $20 billion in annual trade. The Canadian government says the tariffs protect domestic businesses from American competitors gaining advantages in the Canadian market. Finance Minister François-Philippe Champagne called the response "proportional, targeted, and strategic," with some tariffs aimed at politically vulnerable Republican states. Economists warn Canada faces greater economic damage than the US, as 70% of Canadian exports go to America. Prime Minister Mark Carney frames the dispute as an existential threat to Canadian sovereignty, while Trump threatens further escalation in the auto sector.