Canada Vows To Match New US Tariffs 'Dollar for Dollar'
By Kris Ma/John Van Trieste
Canada says it will retaliate "dollar for dollar" against new US tariffs that came into effect over the weekend as the trade war between the two neighbors and formerly close allies escalates.
Canada, U.S. in Tit-for-Tat Tariff Dispute
REPORTER:
Canadian officials inspect some of the finished products inside an Ottawa steel plant. Since Saturday, when the US slapped a 50% tariff on a range of Canadian products, steel included, Canadian producers have been under renewed pressure. The tariffs may only affect around 5% of Canada’s US exports, but they hit some vulnerable sectors like wood products.
But Canada says it’s hitting back.
François-Philippe Champagne (CANADIAN FINANCE MINISTER):
Today I'm announcing that Canada will match the United States tariffs, dollar for dollar rate for rate. Effective September 8th, Canada will impose counter tariffs of up to 15, 25, or 50% on 27.6 billion in imports from the United States of America.
The tariffs will affect around 4.5% of US imports into Canada. And they are strategic, designed not just to protect Canada but to put pressure on the Trump administration ahead of midterms in November. For those at home, the message from Ottawa is to keep buying Canadian.
Melanie Joly (CANADIAN INDUSTRY MINISTER):
If you see a Canadian product, please support it. Because what is really important from this new chapter of the trade war is that actually when you choose a Canadian product, you're not only putting pressure on the US. Right now, you're protecting jobs.
US President Donald Trump has traded insults with Ontario Premier Doug Ford. Trump dismissed claims that he is trying to undermine the French language in Canada—a reference to US requests for English-only packaging. And he’s floated the idea of renaming Lake Ontario “Lake America.”
And US Vice President JD Vance says Canada is letting in third-country products for transshipment to dodge US tariffs.
J.D. Vance (US VICE PRESIDENT):
We know that Canada allows itself to be used as a backdoor for Chinese goods. They treat Chinese goods more fairly than they do the goods that come from the people of Maine. It's insanity. And what we've said to Canada is stop it.
As the trade war escalates, people on both sides of the border are reacting.
Canadian sovereignty is kind of in the background here. So sure, I think it's definitely an insult to Canadians. I think it's an insult to our alliance that's been going back for decades. They're our closest ally. They're right next to the border, and it's bizarre.
It's hurting us, of course. We're doing the best we can to buy Canadian products. Unfortunately, tourism, we don't go there anymore, like a lot of us. There's other places. And I don't know, he's not going to be in presidency forever. But as far as the tariffs go, we'll survive.
What comes next will be a test for an old, neighborly friendship under stress.
