Canada announced retaliatory tariffs as high as 50 percent on hundreds of American products as the trade war between the two countries escalates.

“Canada must respond, and today we are,” said Minister of National Revenue of Canada François-Philippe Champagne.

“Canada will match the United States tariffs, dollar for dollar, rate for rate,” he added.

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As a trade war between the countries intensifies, Canada will start collecting tariffs of 50, 25 and 15 percent on about 700 products beginning on Sept. 8. The most significant measure is a doubling of tariffs on American steel and aluminum to 50 percent. But the list of products affected ranges from household rolls of aluminum foil to railway locomotives and steel bridges.

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Many of the American products Canada will now tax mirror the Canadian exports hit by the new U.S. tariffs, particularly in clothing, forestry products, tools and electronics including smartphones. But Canada is also targeting costly consumer products like dishwashers, washing machines and stoves.

A wide array of fish, frozen and fresh, also appear on the list.

The new Canadian levies cover about $20 billion per year of imports from the United States, the same value as the Canadian exports affected by the tariffs.

After the collapse of the negotiations in Washington, Prime Minister Mark Carney of Canada, an economist and former central banker, said that Canada would match the American tariffs “dollar for dollar.” But he also acknowledged that the move “will raise costs and reduce choice for Canadians.”

“Canada has been ‘Ripping Off’ the U.S.A. for decades. They have been charging our Farmers 400% Tariffs, and more. They have driven many wonderful U.S. companies out of business. For 10 years they wouldn’t certify Gulfstream Jets, until I got involved,” President Trump said on Tuesday.

“They wanted 100% of the market for Gulfstream’s Canadian competitor. I deal with many countries, and Canada is easily the most difficult and unreasonable. They feel entitled, but they are not a State, and will be entitled no longer!” he added.

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The industry minister, Mélanie Joly, called on businesses and consumers to buy Canadian goods as part of a broader “resistance” movement in the trade war.

“You have power,” she said.

The government also announced more than C$7bn in support for businesses affected by the latest tariffs, adding to more than C$20bn in support announced over the past 18 months.

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Canada’s decision to retaliate means both countries have doubled down on a trade war that could cost billions.

Earlier on Tuesday, Trump said he was giving “serious consideration” to changing the name of Lake Ontario to “Lake America” – reminiscent of his decision to rename the Gulf of Mexico to the Gulf of America. Others pointed out that Ontario, Canada’s most populous province, was named after the lake, not the other way around.

Trump’s frustration with Ontario in particular stems from his feud with the province’s premier, Doug Ford, who called the president a “loser” and the “king of bankruptcies” and told the US president to “kiss my a**”. He also threatened to cut electricity and rare earth metal exports to the US.

Trump called Ford a “flunky” of “Governor Carney” and warned “these clowns to ‘fall in line’ or, the consequences for Canada will be far WORSE!”

 

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