CANADA announced 15-50 per cent counter-tariffs on US goods Tuesday, hitting back after trade talks with the United States collapsed and escalating the trade war between the two historically close allies.
The tariffs will take effect September 8, a timeframe previously outlined by prime minister Mark Carney after US president Donald Trump's 50 per cent duties came into effect Saturday.
Canadian officials said the retaliatory tariffs will match US levels and affect industries including steel, dairy and electronics. The government also announced a $5.4 billion aid package for impacted firms and workers.
"This is an unprecedented challenge imposed on Canada. But Canada will meet the moment," finance minister Francois-Philippe Champagne said.
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"I think what Canadians can see this morning is that we stand united," he added. "Canada must respond and today we are, in a proportionate, targeted and strategic way."
Industry minister Melanie Joly called on Canadians to support local businesses while saying Canada would work with new allies and trading partners.
"We cannot wait for Washington to decide our future," she said.
The US tariffs have hit about $20bn in Canadian goods, or about 5.5 per cent of Canada's exports to the United States, after trade negotiations collapsed at the last minute.
Under Canada's planned response, US steel and aluminum products previously subject to a 25 per cent duty will face 50 per cent tariffs.
Goods facing 25 per cent tariffs will include appliances, dairy products like cheese, as well as certain steel and aluminum derivative products.
A small category, including electric equipment and tools, will face a 15 per cent duty. Overall, the affected goods account for about 7.3 per cent of Canada's imports from the United States.
The tariff dispute has also led to threats and criticism between officials on both sides.
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Trump pledged Monday to double tariffs on Canadian autos starting next year, raising them to as much as 50 per cent from the current 25 per cent for non-US content.
Ontario premier Doug Ford criticized Trump's threat on autos, saying he could "kiss my ass" and threatening an electricity export surcharge.
Trump lashed out at Ford, warning of "far worse" consequences. He also referred to Carney as a "governor," renewing his push for Canada to become the 51st US state.
Trump then said Tuesday that he was considering renaming Lake Ontario as "Lake America."
"The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don’t expect to be doing much business with Ontario any longer," Trump said on his Truth Social network.
Trump later posted a map with the words "Lake Ontario" crossed out and replaced with "Lake America" in large gold font alongside a US flag. The post was boosted by pro-Trump social media accounts.
Lake Ontario is one of the five Great Lakes located on the border between Canada and the United States. It shares its name with the Canadian province of Ontario, which borders the lake along with the US state of New York. Toronto, Canada's largest city, sits on the northwestern shore.
The lake threat came as Trump renewed his push for Canada to become the 51st US state and the trade war between the two countries escalated.
It also reflected a dispute with Ontario premier Doug Ford, who said Monday that Trump could "kiss my ass" and threatened a surcharge on exported electricity.
Analysts have warned of tit-for-tat escalation.
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Trump's latest tariffs do not exempt products covered by the US-Mexico-Canada free trade agreement (USMCA). They raise the US effective tariff rate on Canadian exports to 6.9 per cent from 5.1 per cent, Oxford Economics estimates.
Tariffs on plastics, electrical machinery, and wood and paper products contribute most to the increase.
"Manufacturers in Quebec, New Brunswick, and Ontario will be affected the most," Oxford Economics said.
Over the weekend, Carney said US negotiators sought restrictions on Canadian trade deals with other countries at the last minute.
US officials also made unacceptable "threats" to the French language and "Quebec culture," he said, referring to eastern Canada's French-speaking province.
Trump pushed back Tuesday, saying on Truth Social that he would "never interfere with Canadians speaking French" and accusing Carney of lying to "gain political support."
The United States is Canada's biggest trading partner, with Canadian exports to its neighbor representing 70 per cent of its overall total. Canada is the second-biggest US trading partner in goods this year, behind Mexico.
Polling released Sunday by the Angus Reid Institute showed Canadians broadly support Carney's move to walk away from talks, but some fear economic repercussions.
The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products in rolling out new tariffs.
Trump delayed their implementation, but both sides failed to reach an agreement after hours of talks.
Beyond tariffs, Washington and Ottawa also have to agree on revisions to the USMCA, which Trump declined to renew in its current form.
Trump's threat to rename Lake Ontario followed his move to rename the Gulf of Mexico as the Gulf of America last year.
Mexico has refused to accept his executive order renaming the Gulf of Mexico as the Gulf of America on his first day back in office on January 20.
(With inputs from agencies)
