The Canadian government said on the 25th (local time) that it will impose retaliatory tariffs on about $20 billion worth of U.S. goods.
The retaliatory tariffs will apply to about 700 items starting Sept. 8, with tariff rates differentiated by item at 15%, 25%, and 50%. The Canadian government also said it will introduce a C$7.5 billion support package to assist corporations and workers harmed by the new U.S. tariffs.
The Canadian government said the purpose of the measure is not to increase tariff revenue but to protect domestic corporations and reduce dependence on U.S. goods.
The measure is a counterstep to the United States putting into effect tariffs of up to 50% on about $20 billion worth of Canadian goods. As the two countries enter a full-fledged "tariff war," imposing tariffs of similar levels on each other's goods, trade tensions in North America are expected to intensify further.