Canada hits back at Trump’s latest tariffs with up to 50% duties and $5.4 billion package for workers... - Moneycontrol.com

**Canada retaliates with steep tariffs and a $5.4 billion aid package for workers**

Ottawa announced on Thursday that it will impose “dollar‑for‑dollar” retaliatory duties on a slate of U.S. imports, with rates climbing as high as 50 % on products ranging from automobiles and agricultural equipment to certain chemicals and consumer goods. The move comes in direct response to President Donald Trump’s latest round of tariffs, which saw the United States levy a 25 % charge on Canadian steel and aluminum and a series of additional duties on other Canadian commodities. Canadian officials say the new tariffs are calibrated to mirror the monetary value of the American measures, a strategy designed to pressure Washington back to the negotiating table while shielding domestic producers from unfair competition.

In tandem with the tariff regime, the Canadian government unveiled a $5.4 billion support package aimed at workers and firms that could be hit hardest by the escalating trade war. The fund will be administered through wage‑subsidy programs, training grants, and short‑term income assistance for sectors such as automotive manufacturing, grain processing, and forestry that rely heavily on cross‑border supply chains. The Treasury Board expects the aid to be rolled out over the next 12 months, with priority given to regions that have already reported job losses linked to the U.S. measures. The package also includes a $1 billion loan guarantee scheme for small and medium‑sized enterprises seeking to diversify their export markets.

Reactions have been sharply divided. U.S. trade officials called the Canadian tariffs “unreasonable” and warned that they could trigger further escalation, while industry groups on both sides of the border warned of higher costs for consumers—already evident in the United States, where toilet‑paper prices have spiked amid the dispute, according to *The Guardian*. Canadian consumers have begun a nascent boycott of U.S. goods, a trend highlighted by NDTV, and Canadian business leaders are urging a swift diplomatic resolution to avoid a protracted “trade war” that could erode the integrated North American market. Analysts at the *Wall Street Journal* note that the retaliation could push both governments toward a new round of negotiations, but warn that any delay may exacerbate supply‑chain disruptions and inflationary pressures on both economies.