Canada has announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of US goods, matching the value of new duties imposed by Washington as the trade dispute between the two countries escalates.
The counter-tariffs, which will take effect on September 8, will range between 15% and 50% across around 700 products imported from the US, according to a Canadian government statement.
The move comes after President Donald Trump's new 50% tariffs on about $20 billion of Canadian imports came into effect on Saturday. Talks between Ottawa and Washington aimed at preventing the higher duties from taking effect ended without an agreement.
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Canada has also announced a C$7.5 billion package of new and enhanced measures to support businesses and workers affected by the escalating trade conflict. The package includes assistance for small and medium-sized businesses, measures to support company cash flows and aid for workers at risk of losing jobs because of the tariffs.
"Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses," Canada's Finance Minister François-Philippe Champagne said.
The new Canadian tariffs cover a range of US products, with different rates depending on the category.
Steel products will face tariffs of up to 50%, with Canada doubling the rate from the earlier 25%. The highest 50% tariffs will also apply to some products including aluminium, furniture and clothing.
A 25% tariff will be imposed on products such as cheese, appliances and certain seafood, while electronics and tools will face duties of 15%, a Canadian government official said.
The measures also cover US farm equipment, furniture, pulp and paper products and other goods.
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The Canadian government said the structure of the counter-tariffs is designed to limit the impact on Canadian consumers and businesses while ensuring that US exporters also face the cost of the measures.
The latest tit-for-tat action marks another escalation in the Canada-US trade dispute and represents a new low in relations between the two countries.
The two governments had been engaged in negotiations to resolve their differences, but the talks failed to prevent Washington's new tariffs from taking effect. Canada has now responded with its own measures, raising the prospect of further disruption for businesses on both sides of the border.
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