Canada imposes retaliatory tariffs on more than 700 US goods as trade war escalates

The Canadian government on Tuesday said it imposed, including steel and appliances, as trade war escalates, news agency AP reported. In this regard, Canada is targeting more than 700 US-made products as the trade war escalates. The list extends well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%.

The development comes as the tension threatened one of the world's largest trading relationships. The new tariffs extended well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50 per cent.

Moreover, Canada's retaliation to US came after the Trump administration imposed 50 per cent tariffs over the weekend on Canadian goods following the collapse of trade negotiations.

In this regards, Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said US demands during the failed talks showed that Americans wanted to "destroy our major industries".

On the other side, Trump intensified the confrontation on Monday, telling Canadian leaders to "fall in line" or face consequences "far WORSE" than existing tariffs and threatening new 50 per cent tariffs on Canadian vehicles, auto parts and steel.

Trump further added another provocation Tuesday, saying the United States was giving "serious consideration" to renaming Lake Ontario "Lake America" in a feud with Ontario Premier Doug Ford. Such a change would be reminiscent of the Republican president's unilateral action last year by executive order to rename the Gulf of Mexico to the Gulf of America.

The tariffs will take effect from September 8 at rates of 15 per cent, 25 per cent and 50 per cent, with Canada matching the corresponding US tariff rate on more than 700 products such as pulp and paper and electronics.

The tariffs on many American products would double from 25 per cent to 50 per cent, with the largest share of the new measures affecting steel and aluminum. Canadian officials said the goal is not to raise revenue but to protect Canadian companies and reduce US imports.

Amid these development, US steel imports, for example, have already fallen 30 per cent since Canada imposed a 25 per cent tariff, and the new 50 per cent rate is expected to cut them further, Canadian officials said.

Goods facing 50 per cent tariffs include some steel and aluminum products, furniture and clothing. Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25 per cent tariffs. Existing Canadian countertariffs on US autos will remain in place. Canada also announced a support package for workers and businesses affected by the dispute worth 7.5 billion in Canadian dollars (USD 5.4 billion).

(With inputs from AP)