ToplineCanada announced on Tuesday 50% tariffs on hundreds of U.S. products worth about $20 billion in imports—mirroring the rate and scope of the taxes imposed by President Donald Trump on Canadian products over the weekend. Canadian Prime Minister Mark Carney greets workers as he arrives for a news conference at Davie Shipyard in Levis, Quebec, Canada on August 24, 2026. (Photo by ANDREJ IVANOV / AFP via Getty Images)AFP via Getty ImagesKey FactsThe taxes—on 700 products total with rates ranging from 15% up to 50—will take effect Sept. 8. They include doubling the tariff rate for steel and aluminum to 50%.The duties cover products including dairy, seafood, appliances, furniture and clothing, among others. Canada also announced a C$7.5 billion financial support package to blunt the cost for Canadian businesses and workers who could be negatively impacted by the tariffs.TangentTrump on Tuesday lashed out at Canada over the deepening trade war and suggested renaming Lake Ontario “Lake America” because he “does not expect to [be] doing much business with Ontario any longer,” he wrote on Truth Social.Crucial Quote“Our dollar-for-dollar, rate for rate counter-tariffs as well as multi-billion dollar support package will protect workers, farmers, families and businesses,” Canadian Finance Minister François-Philippe Champagne said Tuesday while announcing the new taxes.What To Watch ForCanadian trade minister Dominic LeBlanc left open the possibility of reopening discussions, telling CNBC Tuesday, “our preference was to find a deal that benefits both countries. We still believe that’s possible, but in the meantime, we’re not waiting by the phone.”Key BackgroundCanada suspended trade talks with the U.S. on Friday, citing “unfair” and “uneconomic” demands from the U.S., Prime Minister Mark Carney said. The breakdown in negotiations triggered tariffs Trump announced in July on a range of Canadian goods, including wine, dairy, cement and furniture. Trump moved back the deadline for imposing the tariffs by three days last week, claiming the two countries had reached an agreement, pending the “finalization of documents.” Trump used Section 338 of the Tariff Act of 1930, a Great Depression-era law that allows the U.S. to enact tariffs on countries it believes are discriminating against U.S. goods. The law has never been previously used to impose tariffs. The White House claimed Canada has discriminated against U.S.-made cars, alcohol and dairy products in announcing the move. U.S.-Canada relations have been strained during Trump’s second term as he has repeatedly suggested Canada should become the 51st U.S. state and has complained repeatedly about the U.S. trade deficit with Canada.