Canada readies retaliation to new U.S. tariffs

The United States has imposed 50% tariffs on about $20 billion worth of Canadian goods, affecting roughly 5% of Canada’s annual exports to its southern neighbor. The move follows a breakdown in trade talks and marks a significant escalation in economic tensions between the two countries.

In response, Prime Minister Mark Carney stated that Canada will retaliate “dollar for dollar” with its own tariffs. He said he was not prepared to compromise Canada’s sovereignty or undermine key industries in the face of the new U.S. measures.

Carney indicated that the retaliatory tariffs will target a range of sectors. Among those named were steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, signaling an effort to spread the impact across multiple parts of the U.S. export base.

The value of U.S. imports covered by the new tariffs, at around $20 billion, provides the benchmark for Canada’s pledge to match the action “dollar for dollar.” This framing underscores the intent to align the scale of Canadian countermeasures with the U.S. move.

Ontario Premier Doug Ford emphasized that provincial tools could also be used as pressure points as trade tensions worsen. He said “everything is on the table” and warned that Ontario might cut electricity and critical-minerals shipments to the United States.

Ford specifically cited high-grade nickel and uranium as examples of critical minerals that could be withheld, adding “I’ll cut them off.” He also said Ontario supplies power to 1.5 million homes and businesses and suggested the province could raise electricity prices or stop sending power south as leverage.

The combination of federal tariff plans and provincial threats highlights a broad-based Canadian response to the U.S. measures. Ottawa is preparing sector-specific tariffs while Ontario signals potential curbs on strategic exports in energy and minerals.

While some reporting differs on the precise timing of Canada’s retaliatory tariffs, the core policy stance is clear: Canada intends to answer the 50% U.S. duties on about $20 billion of its goods with equivalent financial pressure, and key provinces are signaling willingness to escalate if needed.