Canada Imposes $20 Billion in Retaliatory Tariffs on US, Up to 50% on 700 Items

The Canadian government has decided to impose retaliatory tariffs of up to 50% on approximately $20 billion worth of U.S. products.

This marks an escalation in a "trade war" between the closest of allies, which share a border and have maintained close cooperation in economic, social, and cultural spheres.

The Canadian Department of Finance announced on the 25th, local time, that it will differentially impose retaliatory tariffs of 15%, 25%, and 50% on about 700 U.S. product categories.

The import value subject to these retaliatory tariffs amounts to 27.6 billion Canadian dollars, or approximately $20 billion U.S. dollars.

These tariff measures will take effect starting on the 8th of next month.

This is a tit-for-tat response to the U.S. imposition of a 50% tariff on approximately $20 billion worth of Canadian products starting on the 22nd.

Canada explained that it is responding with a so-called "dollar-for-dollar, rate-for-rate" approach, matching the amounts and tariff rates of the U.S. measures.

By product category, a 50% tariff will be applied to certain U.S. steel and aluminum products, furniture, and clothing.

A 25% tariff will be imposed on home appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivative products, while a 15% tariff will apply to industrial tools and other goods.

Canadian government officials explained that the purpose of these measures is not to increase tariff revenue, but to protect Canadian businesses and reduce imports of U.S. goods.

Canadian Minister of Finance François-Philippe Champagne stated, "We did not choose this conflict, but when economic integration is used as a weapon rather than the foundation of a win-win partnership, we must stand up."

Minister Champagne defined the current situation as "an unprecedented challenge forced upon Canada."

The Canadian government also announced a support package worth 7.5 billion Canadian dollars, or approximately $5.4 billion, targeted at businesses and workers suffering damages from the trade conflict.

The support measures include liquidity support for small and medium-sized enterprises, financial assistance for companies affected by the tariffs, and the expansion of employment insurance programs for workers in damaged industries.

These retaliatory measures come as trade conflicts between the two countries have reignited following the breakdown of bilateral trade negotiations last week and the subsequent U.S. imposition of a 50% tariff on Canadian goods.

Canadian Prime Minister Mark Carney previously stated that the U.S. demanded too much from Canada during the negotiation process while offering too little in return, making it impossible to accept U.S. demands.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.