Canada announces retaliatory tariffs on $25b worth of US goods, unveils support measures

OTTAWA – Canada on Aug 25 announced retaliatory tariffs on C$27.6 billion (S$25.3 billion) worth of American goods, matching dollar-for-dollar new duties imposed by Washington, and unveiled financial support for Canadian businesses and workers caught in the escalating trade war.The counter-tariffs take effect on US goods from Sept 8 and will impose duties of 15 per cent, 25 per cent and 50 per cent across 700 products imported from south of the border, a government statement said.In terms of financial support for affected workers and industries, Canada announced a C$7.5 billion package of new and enhanced measures including support for small and medium-sized businesses, a stream for funding cash flows of companies, and support for workers who could be at risk due to the new tariffs.From Aug 22, President Donald Trump’s new 50 per cent tariffs across US$20 billion of Canadian imports took effect after talks between the two countries to avert the tariffs collapsed. The new tit-for-tat tariffs mark a new low in the Canada-US relationship.“Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses,” Canada’s Finance Minister François-Philippe Champagne said.The new tariffs are designed so that the impact on Canadian consumers and businesses is minimal and could still hit the US, a government official said.The 50 per cent tariffs are on some important sectors such as steel, aluminium, furniture and clothing, 25 per cent tariffs are on cheese, appliances and some seafood, while the 15 per cent tariffs will be on electronics and tools, the official said. REUTERS