Canada Hits Back at Trump With Tariffs Up to 50%, Threatens to Cut Electricity to US
Canada is striking back at President Trump’s escalating trade offensive, announcing retaliatory tariffs of up to 50% on roughly $20 billion worth of American goods while Ontario Premier Doug Ford threatens to cut electricity and critical-mineral exports to the United States.
Canadian Finance Minister François-Philippe Champagne unveiled the countermeasures Tuesday, declaring that Ottawa would match the United States “dollar for dollar, rate for rate.” The tariffs will take effect Sept. 8 and cover nearly 700 categories of American products.
The Canadian duties will be imposed at rates of 15%, 25% or 50%, depending on the product. Steel and aluminum will face 50% tariffs, while construction materials, agricultural products, dairy, seafood, electronics, paper products and home appliances are also among the American exports being targeted.
Champagne described the retaliation as a “proportionate, targeted, and strategic” response to Trump’s decision to impose tariffs as high as 50% on approximately $20 billion worth of Canadian imports. Those American tariffs took effect Saturday after last-minute negotiations between Washington and Ottawa collapsed.
Prime Minister Mark Carney has taken an increasingly confrontational position toward Washington, arguing that Canada must defend its economic interests and sovereignty. Carney recently described the confrontation as a trade “war,” saying Canada had been attacked and therefore had an obligation to respond.
Ottawa is also preparing financial assistance for Canadian businesses and workers caught in the crossfire. The government announced billions of Canadian dollars in support measures, including interest-free financing for affected small and medium-sized businesses.
But the most explosive threat is coming from Ontario. Ford has warned that “everything’s on the table” as his province considers additional retaliation, including restricting electricity exports and supplies of critical minerals to the United States. Ontario currently provides electricity used by roughly 1.5 million American homes and businesses.
Critical minerals could provide Canada with additional leverage because they are essential to American manufacturing and national defense. The Pentagon has been attempting to secure reliable supplies of minerals needed for military aircraft, missiles, electronics and munitions while reducing U.S. dependence on China.
Trump has responded aggressively to Ford’s threats, including floating the idea of renaming Lake Ontario the “Lake of America.” The president has also warned Canada that additional retaliation could result in even tougher economic consequences from Washington.
The confrontation could become considerably more serious next year. Trump announced Monday that he intends to raise tariffs on Canadian cars, trucks and automotive parts to 50% beginning Jan. 1, 2027, potentially disrupting the deeply interconnected North American automobile industry.
The administration has argued that Canada has benefited disproportionately from access to the enormous American market while maintaining trade barriers that hurt U.S. producers. Trump has repeatedly encouraged manufacturers facing tariffs to move production into the United States, where he says they would face no import duties.
Canada, however, is signaling that it has no intention of backing down. With retaliatory tariffs now scheduled for September and Ontario threatening to use electricity and critical minerals as additional leverage, the dispute between two of the world’s closest economic partners is rapidly escalating into a much broader trade confrontation.