Top News

New Delhi: The trade war between America and Canada has now intensified. Canada on Tuesday decided to impose retaliatory tariffs on about $20 billion worth of goods coming from America. This includes more than 700 goods such as steel, dairy products, electrical equipment, agricultural goods, furniture, clothing, fish, seafood, cosmetics and toilet paper. Tariffs on some American goods will be up to 50 percent. The new tariffs will come into effect from September 8.

Canada said – we did not start the conflict

Canadian Finance Minister François-Philippe Champagne said Canada did not start this conflict, but when economic relations are used as a weapon the country has to take action to protect its interests.

This decision of Canada comes after the 50 percent duty imposed on Canadian goods by the US President Donald Trump administration. Tension has increased further after trade talks between the two countries failed.

Canadian Prime Minister Mark Carney has accused the US of trying to put Canada under pressure and harm its key industries. Canada says the purpose of these steps is not to raise money for the government, but to protect Canadian companies and employees and reduce dependence on American goods.

Trump’s threat and Lake America controversy

Donald Trump on Monday asked Canada to bow to US demands and warned that if it does not do so, more stringent measures will be taken. He has also threatened to impose new 50 percent tariffs on Canadian cars, auto parts and steel.

Apart from this, Trump has also increased the controversy by saying that he should consider changing the name of Lake Ontario to Lake America. After this statement, the anger in Canada has increased further.

How much tariff will be imposed on which goods?

Canada’s new tariffs will impose a 50 per cent duty on some steel and aluminum products, furniture and clothing. A 25 percent tariff will be imposed on electrical appliances, dairy products, cheese, fish and seafood and some steel-aluminum products.

The government has also announced a Canadian dollar 7.5 billion aid package for workers and businesses affected by the trade dispute. More than Canadian $30 billion has been spent on trade dispute relief measures since the beginning of 2025. It is clear that this trade war is taking a heavy toll on the economy of both the countries, but at present neither side is ready to bow down.