The US has doubled its auto tariffs to 50%! Canada retaliates: tariffs of up to 50% on 700 American products.

According to Xinhua News Agency, the Canadian federal government announced on August 25 that it will impose retaliatory tariffs on over 700 U.S. goods worth C$27.6 billion (approximately US$20 billion), while launching a C$7.5 billion assistance program for businesses and workers. The countermeasures will take effect on September 8.

According to the list released by Canada's Department of Finance, the retaliatory tariffs target steel and aluminum, dairy products, home appliances, agricultural equipment, pulp and paper, plastics, and electronic products, with rates set at three tiers: 15%, 25%, and 50%.

Tariffs on most U.S. steel and aluminum products will rise from 25% to 50%. A 25% tariff will apply to cheese and other dairy products, fish and seafood, and certain steel and aluminum derivatives. Existing retaliatory tariffs on U.S. automobiles will remain in place.

The 50% heavy tariff also covers furniture, golf clubs, clothing, smartphones, monitors, gaming consoles, and motorcycles. Canadian federal officials stated that the total value of U.S. goods affected by the countermeasures matches the value of goods subject to the U.S. 50% tariff, achieving an equivalent, dollar-for-dollar response.

The trigger for this tariff clash was the collapse of U.S.-Canada trade negotiations at the last minute on August 21. The U.S. subsequently imposed a 50% tariff on approximately US$20 billion worth of Canadian goods on August 22, covering products such as wine, cement, and hockey equipment.

Trump then escalated on social media on August 24, announcing that starting January 1, 2027, tariffs on Canadian cars, trucks, auto parts, and steel would rise to 50%, up from the current 25% rate on Canadian automobiles—effectively doubling it. He also stated that producing these products on U.S. soil would carry zero tariffs, aiming to pull the supply chain back to America.

Canadian Prime Minister Carney had previously issued a tough warning, vowing to respond dollar-for-dollar.

It is understood that automobiles are Canada's second-largest export category. If the 50% auto tariff takes effect, some automakers' factories in Canada may face closure.