Murray Wood: Goodbye, Dolly
Murray Wood says Canadians may be angry at U.S. leadership, but like almost everyone else in the world, they loved Ameri...
OTTAWA — The federal government hit back at the latest escalation in the trade war with the United States on Tuesday, announcing plans to hike American steel and aluminum tariffs from 25 to 50 per cent.
The move, which will come into force on Sept. 8, is part of a list of nearly 900 U.S. products being tariffed in retaliation for the United States imposing new tariffs on Canada last week.
The government will also impose 50 per cent tariffs on smartphones, golf clubs, video game consoles, fishing rods, clothing and apparel, furniture and perfumes, among other goods.
It will levy a 25 per cent tariff on appliances, agricultural machinery, dairy products, seafood and certain steel and aluminum derivatives products.
A 15 per cent tariff is also being tacked on a small list of items including hand tools, air conditioners and forklifts.
Finance Minister François-Philippe Champagne said the U.S. levies have “real consequences” for Canadian companies and consumers.
“Canada must respond and today we are — in a proportionate, targeted and strategic way,” he said.
Champagne was among a number of federal cabinet ministers who presented the government’s response at a news conference at an Ottawa roofing manufacturer on Tuesday.
Before the announcement, government officials gave a briefing on background to reporters on the plan and stressed Canada was not targeting any new products beyond ones already hit by U.S. President Donald Trump, as not to further escalate the trade war.
However the officials did not say whether the list targeted products from specific U.S. states.
“The first (goal) is to protect our workers, protect our markets,” Industry Minister Mélanie Joly told reporters later.
“But of course, we’ve always been clear we need to put pressure. And that is actually the reason why there are counter-tariffs. I think in the U.S., they’re very much aware of that. And that’s why they’ve been pushing to get (U.S. alcohol back on shelves) because they know that it’s having political pressure back home for them.”
Officials could not provide any figures on how much revenue Canada is expecting to generate from these new tariffs, but said it wouldn’t be more than the $7.5 billion in aid Ottawa also announced on Tuesday.
The aid package is meant to help Canadian businesses impacted by the trade war with the United States. Among the measures are new loan programs for businesses and more flexibility to apply for employment insurance.
Candace Laing, president of the Canadian Chamber of Commerce, said while she welcomed the aid package she is worried about businesses being able to repay the loans.
“We see that the intention of loans is helpful, but they can also be a monkey on the back when they come due,” Laing said in a statement.
“As this rolls out, we understand there will be improvements along the way, as we have seen from past iterations of government-led crisis management.”
Ottawa is matching the dollar amount of the U.S. tariffs, but the list does not include all of the same items targeted by President Donald Trump — like hockey sticks and Canadian alcohol.
“Economic sovereignty means the capacity to produce, invest and grow in Canada,” Joly said.
She said the government has already spoken with Canadian retailers about ensuring Canadian products on their shelves are clearly identified and said Canadians should buy domestic products.
The White House has not yet responded to a request for comment about the retaliatory duties.
Brooke Rollins, Trump’s agriculture secretary, told reporters at the White House that “with regards to Canada, the president has been very clear for the last year and a half that the way they treat our dairy farmers in America is just not … going to continue any longer.”
When asked about Canada’s retaliatory measures she said there’s no doubt it causes concern among ranchers and farmers because there’s a lot of “unknown out there.” But she added that Trump is a master negotiator and he always prioritizes farmers.
While the tariffs on aluminum are a direct response to the measures the U.S. took on Canada, the move is likely to resonate with Trump.
Bloomberg reported on Monday that while Trump was on a call endorsing a Republican candidate for governor in Oklahoma, the president said the U.S. “desperately needs” aluminum, which he said they almost entirely get from Canada.
Prime Minister Mark Carney briefed opposition leaders Tuesday morning on the state of trade talks with the United States. A media release from the Prime Minister’s Office says the leaders spoke about the ongoing response and “the importance of a united Team Canada approach.”
Conservative Leader Pierre Poilievre spoke to reporters in Windsor on Tuesday and said he would put aside partisanship to work with other parties to respond to Trump’s “unjustified” tariffs.
He reiterated calls for the Liberals to recall Parliament and release the text of the proposed deal that Canada’s trade team walked away from last week.
This report by The Canadian Press was first published Aug. 25, 2026.
— With files from Craig Lord, and Kelly Geraldine Malone in Washington
Nick Murray, The Canadian Press
