Canada is imposing retaliatory tariffs on American goods worth about $20 billion annually. The tariffs will take effect on September 8. This was reported by Qazaqyia.kz citing Reuters.
The Canadian government will set tariffs of 15%, 25%, and 50% on approximately 700 categories of US goods. Authorities said they took mirror measures in response to new American tariffs.
Earlier, US President Donald Trump imposed 50% tariffs on Canadian goods worth $20 billion. They took effect after trade talks between the countries failed.
"Our equivalent compensatory tariffs, as well as a multi-billion dollar support package, will protect workers, farmers, families, and businesses," said Canadian Finance Minister François-Philippe Champagne.
Canada will impose the highest tariffs of 50% on American steel, aluminum, furniture, and clothing. A 25% tariff will apply to cheese, household appliances, and some seafood, while a 15% tariff will cover electronics and tools.
The list also includes prepared foods, perfumes, toiletries, plastics, lumber, paper products, carpets, motorcycles, industrial equipment, and railway locomotives.
According to Canadian Industry Minister Mélanie Joly, the countermeasures should not only protect local companies but also increase political pressure on the US ahead of the November 3 midterm elections.
"We are also choosing goods that are produced in certain American states. Thus, we are acting reasonably and strategically, exerting political pressure," Joly said.
At the same time, Canadian authorities announced 7.5 billion Canadian dollars in support for businesses and workers who may suffer from the trade war. The package includes assistance for small and medium-sized enterprises, working capital financing, and support for company employees.
The Business Development Bank of Canada will offer affected businesses interest-free loans ranging from 2.5 million to 5 million Canadian dollars. According to Joly, the first payments on them can be deferred for 36 months.