Canada strikes back with tariffs on about $20 billion worth of US goods
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Prime Minister Mark Carney speaks about Canada's response to new U.S. tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
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FILE - Canada Prime Minister Mark Carney and President Donald Trump hold a press conference at the White House in Washington, D.C., Oct. 7, 2025. (Adrian Wyld/The Canadian Press via AP, File)
TORONTO (AP) — Canada struck back at United States President Donald Trump on Tuesday with tariffs on about $20 billion worth of US goods, in response to the latest round of tariffs on Canada.
The outcome could resonate far beyond Canada, showing other governments whether a smaller US ally can withstand Trump’s economic pressure.
Canadian Prime Minister Mark Carney says US demands could hollow out key Canadian industries and limit the country’s independence, while Trump’s threats to Canadian sovereignty have rallied the public behind him.
“Carney and Canada have become symbolic of resistance to him,” Canadian historian Robert Bothwell said.
“And what he’ll want to do is make an example of Carney and Canada and theoretically terrify everybody else while in fact showing them that they need to remove themselves even further from the United States.”
The tariffs hit hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%.
Canada says its tariffs match Washington’s dollar for dollar and rate for rate. They take effect at 12:01 a.m. Tuesday under an executive action known as an order in council and cover about $20 billion in American goods, roughly 6% of the $333.6 billion the United States exported to Canada last year.
RBC Economics, the research arm of the Royal Bank of Canada, said the measures were unlikely to dent US growth overall but could hit some businesses hard.
Canada has already gone beyond tariffs in other ways. Eight of its 10 provinces continue to restrict or ban sales of US alcohol.
The Distilled Spirits Council says US spirits exports to Canada fell more than 70% year over year after those restrictions took effect.
Trump threatens to punish Canada even further
Since Canada-US trade talks collapsed August 21, Trump and his administration have unleashed a barrage of tariffs, threats and personal attacks portraying Canada as weak and dependent.
On Monday, Trump threatened to ban the sale of aircraft from Canada’s Bombardier, unless they manufacture planes in the United States.
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