CANADA HAS STRUCK back at the United States with retaliatory tariffs on about $20bn (€17.15 billion) worth of American goods – including steel, dairy products, appliances and farm equipment.

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%.

Canada’s retaliation came after the Trump administration imposed 50% tariffs over the weekend on Canadian goods following the collapse of trade negotiations.

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”.

President Donald Trump intensified the confrontation on Tuesday, saying the United States was giving “serious consideration” to renaming Lake Ontario “Lake America” in a feud with Ontario Premier Doug Ford.

The tariffs will take effect from 8 September at rates of 15%, 25% and 50%, 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% to 50%, with the largest share of the new measures affecting steel and aluminium.

Canadian officials said the goal is not to raise revenue but to protect Canadian companies and reduce US imports.

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

Goods facing 50% tariffs include some steel and aluminium products, furniture and clothing.

Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminium derivatives will face 25% tariffs.

Existing Canadian counter-tariffs on US vehicles will remain in place.

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Canada also announced a support package for workers and businesses affected by the dispute worth 7.5 billion in Canadian dollars (€4.68 billion).

Canadian officials acknowledged the counter tariffs will raise costs for some businesses and consumers but said they expect the overall economic effects to be moderate.

They said the government has provided more than 30bn Canadian dollars (€18.56 billion) in tariff-related support since the beginning of 2025 — far more than it has collected in retaliatory duties — as it tries to cushion the blow from the trade fight.

Canada and the United States have deeply integrated supply chains across vehicles, energy, agriculture and manufacturing – making a prolonged trade fight potentially costly for businesses and workers on both sides of the border.