retaliatory

TORONTO — Canada struck back at the United States on Tuesday with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply.

The tension threatened one of the world’s largest trading relationships. 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%.

“We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” Finance Minister François-Philippe Champagne said in French, calling the situation “an unprecedented challenge imposed on Canada.”

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 U.S. demands during the failed talks showed that Americans wanted to “destroy our major industries.”

President Trump intensified the confrontation Monday, telling Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs and threatening new 50% tariffs on Canadian vehicles, auto parts and steel.

Trump added another provocation Tuesday, saying the United States was giving “serious consideration” to renaming Lake Ontario “Lake America” in a feud with Ontario Premier Doug Ford. Such a change would be reminiscent of the Republican president’s unilateral action last year by executive order to rename the Gulf of Mexico to the Gulf of America.

The tariffs will take effect Sept. 8 at rates of 15%, 25% and 50%, with Canada matching the corresponding U.S. 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 aluminum.

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

U.S. 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 aluminum products, furniture and clothing. Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25% tariffs. Existing Canadian countertariffs on U.S. autos will remain in place.

Canada also announced a support package for workers and businesses affected by the dispute worth $7.5 billion in Canadian dollars ($5.4 billion in U.S. dollars).

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 $30 billion Canadian dollars (US$21.7 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 autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border.

Businesses and consumers are caught in the middle, facing uncertainty about how much prices may increase.

Michael Howard II, owner of a furniture business in Warren, Michigan, outside Detroit, said the tariffs will hamper the “ability for us to put food on the table for our family” and affect “the ability for us to give back to our community.”

Howard and his wife started their business a decade ago. They make and sell everything from dining room tables to bookcases.

“To say that we don’t need Canada is just disingenuous,” he said. “It’s dishonest. And it’s just absolutely not truthful. We need our neighbor, but also they need us.”

Carney said Monday that Canada may need to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.

“An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we’re going to accept,” Carney said.

Carney was even more blunt in French.

“We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum,” Carney said. “That was one of the main reasons we said no. It was a bad deal.”

On Monday, Carney said U.S. negotiators had raised the discoverability of French-language content on streaming platforms, along with French-language labeling rules, as trade irritants. He rejected the idea that those protections were negotiable, saying in French: “For the Americans, questions about the French language, Quebec culture, francophone culture and Canadian culture are irritants. Here in Quebec, here in Canada, they are rights.”

In a social media post early Tuesday, Trump wrote: “I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing. This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!”

Gillies writes for the Associated Press. AP writers Seung Min Kim in Washington and Mike Householder in Warren, Mich., contributed to this report.

Canada will unveil retaliatory tariffs against the U.S. on Tuesday as tensions escalated with President Donald Trump pressing the Canadian government to “fall in line,” while Prime Minister Mark Carney accused Washington of offering a bad deal.

Canadian officials, including Finance

Canada’s Prime Minister Mark Carney has announced retaliatory tariffs on the United States after Washington imposed a 50 percent levy on $20bn worth of Canadian goods.

Carney, speaking in Ottawa on Saturday, said the new Canadian tariffs would target US steel, dairy and electronics industries among others and take effect on September 8.

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney told reporters.

The announcement came after days of intense negotiations broke down late on Friday, worsening a delicate relationship between the longtime trade partners and allies.

US President Donald Trump’s new tariffs hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, and cover some $20bn worth of goods, or 5.5 percent of Canadian exports to the US.

Carney said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.

“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal,” Carney said, adding these demands included curtailing Canada’s ability to forge new trade deals.

“We cannot accept what they’ve offered, and we will not give what they’ve asked.”

He added that US negotiators also made unacceptable “threats” to the French language and “Quebec culture”, referring to the French-speaking province in eastern Canada.

No new talks planned

Carney is one of the few global leaders to retaliate against US tariffs and has pledged to forge new trade and military alliances, despite Canada’s dependence on the ‌US for nearly 70 percent of its exports.

Canada will impose tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with some products the US previously targeted in Canada, Carney said from Ottawa’s Parliament building. The government will release details on its response in the coming days, he said.

Carney said Canada would announce support measures next week for industries hit ⁠by the new US duties, adding these measures could last years.

There was no immediate comment from the White House.

US Trade Representative Jamieson Greer told Fox News on Saturday that no new ⁠talks are planned with Canada.

“We’re moving forward with measures that respond to Canadian retaliation,” Greer said. “They’ve always had the best deal, and they still would have an even better deal, but they didn’t want that.”

The new US tariffs are expected to have a major impact on Canada’s economy.

“Costs are going to go up, prices are going to go up, unemployment is going to go up as well,” said Al Jazeera’s David Mercer, reporting from the Canadian city of Calgary. “And it’s been warned that business owners – small [and] medium-sized businesses – some of those will have to declare bankruptcy,” he said.

At the same time, Mercer said, Carney is selling the trade war as an opportunity for Canada to strengthen its trade relations with other countries.

“He’s been around the world, he’s been talking to countries in Asia, in Europe, shoring up new trade relationships, wanting to diversify Canada’s economy and Canada’s trade relationships with other countries around the world just to get away from that dependency that Canada has traditionally had on the United States,” he said.

Public opinion surveys in Canada show most Canadians back a “tougher approach” to the US in the trade talks. A poll by Leger last week said 56 percent of Canadians favoured a hard line and making no more concessions.

‘Bad deal’

Ontario Premier Doug Ford, one of the most vocal ⁠opponents of US tariffs, supported Carney’s decision to retaliate.

“I’m glad he didn’t sign that deal because it was a bad deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector, and manufacturing sector,” Ford told reporters on Saturday.

In Port Colborne, Ontario, resident Stuart Edwards said the trade war was going to “hurt everybody” and “it’s just sad”.

“We have a bully in Washington, and he’s just hitting us all with the big stick all the time,” he said. “And we’re not going to put up with it; Canada isn’t. We’ll fight back.”

But Pamela Coulis, from Fort Erie in Canada, was worried about rising prices.

“I think probably the gas will go up even more, and all products, from food to, I don’t know, wood, everything else,” she said.

Diamond Isinger, who served as a special adviser to former Canadian Prime Minister Justin Trudeau, said both countries will suffer from the trade war.

“It’s going to cause pain and challenge for Canadians and Americans alike, in terms of the actions that, unfortunately, the US has taken as well as Canada’s retaliation. But ultimately this was the way forward; this was the only realistic next step,” she said.

“Because the US administration responds best, of all the responses that they could have, to all the actions that a government like Canada could take, to strength,” Isinger added.

“So, we could not simply accept 50 percent tariffs going forward. We had to move forward with our own retaliatory package.”

In the US, the escalating trade war was met with anger by Democratic lawmakers and governors from border states including Minnesota, New York and Washington, who blamed Trump for triggering chaos that would raise costs for US businesses and families.

“Needlessly picking fights with our allies and raising prices here at home. That’s Trump’s economic policy in a nutshell,” New York Governor Kathy Hochul posted on X.

The Business Roundtable, a group of 200 chief executives of leading US corporations, also warned the new tariffs “risk raising costs for American businesses and families”, and urged both governments to resume negotiations.

Brazil has not yet decided whether it will proceed with retaliatory measures, but has committed to defending its position.

Brazil has opened consultations into potential retaliatory measures against the United States following the imposition of 25 percent tariffs on a range of Brazilian exports.

The new US tariffs are “unjustified and arbitrary”, and Brazil will “continue to defend its position in all appropriate forums”, the Brazilian government said in a statement on Thursday.

The step is the beginning of the reciprocity process that could eventually see Brazil introduce retaliatory measures, including tariffs, on imports from the US.

This early stage involves further diplomatic consultations with US trade authorities.

In July, the US imposed a surcharge of 25 percent on some Brazilian imports, including sugar, clothing, paper and steel, alleging unfair trade practices. The US also hit Brazil – and a host of other countries – with an additional 12.5 percent tariff linked to allegations of lax enforcement of forced labour bans.

While no decision has yet been made, Brazil’s retaliatory options include imposing taxes or fees, eliminating exemptions or reducing import tariffs, or even restricting imports of American goods or services.

A source told the Reuters news agency that further measures could go beyond tariffs, for example by suspending pharmaceutical and agricultural patents.

The US runs a trade surplus with Brazil, meaning it sells the country goods and services worth more than it imports from it. In 2026 so far, the US has exported $26.5bn worth to Brazil and imported $17bn, according to the US Census Bureau.

Multiple rounds of tariffs

Under President Donald Trump, the US has repeatedly sought to impose sweeping tariffs on imports into the US, lamenting the US’s trade deficit with countries around the world.

In April 2025, the White House announced the introduction of a minimum 10 percent tariff on nearly every country, in what Trump and his team dubbed the “Liberation Day” tariffs.

Those were struck down by US courts this year, but the latest round of tariffs is widely seen as a replacement for the failed Liberation Day tariffs, designed to survive challenges in the US court system.

Aug. 6 (UPI) — China has issued retaliatory sanctions against seven U.S. companies and organizations it accused of aiding U.S. punitive measures targeting Beijing, the latest tit-for-tat move between the world’s two largest economic powers, issued weeks before Chinese leader Xi Jinping‘s September visit to Washington.

Beijing’s Ministry of Commerce issued the sanctions in separate orders Wednesday, effectively imposing a China-wide ban on commercial and institutional dealings with the seven entities.

Applied DNA Sciences Inc. Stratum Reservoir LLC, Altana Technologies Inc., Responsible Business Alliance, Verite Group Inc, and Human Rights in China were blacklisted for assisting and supporting “the United States’ illegal sanctions concerning Xinjiang,” the ministry said in a statement.

Compliance Testing LLC was hit for assisting and supporting U.S. Federal Communications Commission actions “harming China’s sovereignty, security and development interests,” the ministry said in a second statement.

China imposed the ban against the five U.S. companies and one nongovernmental organization less than a week after the United States added 43 companies to its Uyghur Forced Labor Prevention Act Entity List, effectively banning the import of their products on thee presumption they were made using the forced labor of Uyghurs in northwestern Xinjiang region.

The U.S. State Department declared China’s treatment of its Uyghur Muslim minority group a genocide in 2021, alleging that Beijing has arbitrarily imprisoned at least 1 million of them. China has been credibly accused of subjecting Uyghurs to forced sterilization, forced labor and forced detention, as well as imposing draconian restrictions on their freedom of religion, expression and movement. Several other governments, as well as legal and civil independent bodies, have also accused China of genocide.

China vehemently rejects the accusations, claiming the camps are for eduction and training.

A Commerce Ministry spokesperson said Wednesday that “China is strongly dissatisfied with and firmly opposes” the sanctioning of the 43 companies.

The statement announcing the retaliatory measures said the U.S. move seriously violated international law, the basic norms governing international relations and an infringed upon its sovereignty, security and development interests.

It was unclear exactly how the five companies and one nongovernmental organization were involved, but China’s ministry said “their conduct is egregious.”

Human Rights in China, an NGO founded in 1989, condemned being sanctioned by China, calling it “a blatant act of retaliation against entities working to ensure that international trade and commerce are not tainted by forced labor and other serious human rights abuses.”

“It is another attempt by the Chinese government to intimidate and silence organizations that advocate for universal human rights and corporate accountability,” it said in a statement.

“While we were surprised to find HRIC included alongside organizations we were previously unfamiliar with, we regard this designation as a badge of honor.”

The ministry blacklisted Compliance Testing after the FCC on July 28 banned foreign-made humanoid robots and power inverters, a move that some said specifically targeted China. It also came amid reports that the Trump administration was drafting a ban on Chinese data center components.

Compliance Testing’s alleged involvement was not clear, but China’s Commerce Ministry alleged that it was involved in the FCC’s measures “seriously infringing upon the legitimate and lawful rights and interests of Chinese companies.”

In response to reports concerning the drafting of the new Chinese electronics ban, Foreign Ministry spokesperson Lin Jian said, “China opposes the U.S. overstretching the concept of national security and abusing state power to go after Chinese businesses.”

“Protectionism will not make the U.S. more competitive. The U.S. move seriously disrupts normal trade and economic exchanges between Chinese and U.S. businesses and consumers or anyone else for that matter,” he said in a statement. “China will continue firmly protecting our businesses’ legitimate and lawful rights and interests.”

The countermeasures come weeks before Xi is expected to visit Washington on Sept. 24 for talks with Trump on artificial intelligence, technological competition and global economic relations.

The US has paused its two-week bombing campaign against Iran, prompting Tehran to suspend its regional retaliatory attacks.

Iran’s Revolutionary Guard Corps released a video of what they say were missiles launched by their naval forces in retaliation of US strikes. US-Iran tensions have been escalating in the Strait of Hormuz leading to its closure and exchange of strikes between US and Iran.

June 10 (UPI) — Iran said it launched strikes against U.S. military bases in neighboring countries in and around the Persian Gulf early Wednesday in retaliation for American “aggression” after U.S. forces conducted strikes on targets in southern Iran.

Khatam al-Anbiya Central Headquarters, Iran’s central command, said in a statement published by the state-run Islamic Republic News Agency that the “brave Army of the Islamic Republic and the Islamic Revolutionary Guard Corps” carried out a “powerful assault” on U.S. military assets in the region.

“The criminal U.S. military should know that if aggression against the Islamic Republic of Iran is repeated, even more severe and widespread attacks will be carried out against the designated target bank in the region, it added.

The statement was accompanied by a photo showing six ground-launched ballistic missiles blasting off from an undisclosed desert location but it was unclear if it was of Wednesday’s strikes as the image was undated and uncredited.

The IRGC claimed missiles were fired at Jordan’s Muwaffaq Salti airbase, where U.S. F-35 fighter jets and other aircraft operate out of, and that facilities in Kuwait and Bahrain were also attacked.

It said that the U.S. Fifth Fleet in Bahrain was targeted with drones.

The attacks had yet to be verified but Jordan’s armed forces said they downed five Iranian missiles targeting the country’s al-Azraq district, 60 miles east of the capital, Amman.

The Kuwaiti military, in a post on X just after 3 a.m. local time, said its air defenses were “currently intercepting hostile aerial targets.”

Bahrain’s interior ministry issued multiple alerts around the same time, advising residents that the air-raid siren had been sounded, urging them not to panic and to move to the nearest safe place to shelter immediately.

No deaths or injuries were reported.

The escalation came almost immediately after U.S. Central Command announced that it had completed “self-defense strikes” ordered by President Donald Trump in response to the downing of a U.S. Army Apache helicopter earlier Tuesday.

CENTCOM said in a statement early Wednesday that U.S. Air Force and Navy fighter jets struck Iranian air defense, ground control stations, and surveillance radar sites near the Strait of Hormuz “with precision munitions’ in an approximately four-hour-long operation.

“The operation was a proportional response to recent attacks on U.S. forces and international commercial ships transiting regional water,” said CENTCOM.

The ratcheting up of tensions prompted Beijing and Moscow to call on both sides to apply the brakes.

“China is deeply concerned over the latest developments regarding Iran. Relevant parties need to remain calm, exercise restraint, stop exacerbating confrontation and escalating tensions, take concrete actions to ease the situation, stick to political and diplomatic means for resolving disputes, and work for an early realization of a comprehensive and lasting cease-fire,” Chinese foreign ministry spokesman Lin Jian told reporters on Wednesday.

In a post on X, Russian Foreign Ministry spokesperson Maria Zakharova said Moscow was very worried about what she called “the new spiral of U.S.-Iran armed confrontation.”

She called on both parties to show restraint and halt military attacks immediately, adding that Russia stood ready to assist in finding and implementing “mutually acceptable negotiated solutions” to the crisis.