The Canadian government has unveiled a retaliatory tariff strategy targeting nearly C$28 billion ($20 billion) in American imports. The measures, which include levies as high as 50% on items ranging from steel and aluminum to furniture and fresh tuna, are scheduled to take effect on September 8. This move follows the breakdown of trade negotiations between the two nations last week.

Finance Minister François-Philippe Champagne described the response as a "proportionate" and "strategic" measure against the tariffs previously enacted by the Trump administration. To mitigate the economic impact on domestic industries, the Canadian government has pledged an additional C$7.5 billion in support programs aimed at protecting jobs and assisting affected businesses.

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The trade dispute has intensified following a series of public statements from President Donald Trump, who criticized Canada's trade practices and suggested potential future hikes on automotive imports. In response, Prime Minister Mark Carney accused the US administration of attempting to dismantle key Canadian manufacturing sectors. Despite the heightened rhetoric, some officials, including Ontario Premier Doug Ford, have expressed a desire to return to the negotiating table to secure a mutually beneficial agreement.

The current impasse has created uncertainty regarding the future of the USMCA, the free trade agreement involving the US, Canada, and Mexico. Mexican officials have already initiated emergency discussions in Washington to address the fallout from the collapsed negotiations. The list of nearly 900 targeted US products includes varying tariff rates, with 50% applied to metals and consumer goods, 25% to appliances and dairy, and 15% to specific machinery and tools.

Source: BBC News