50% Tariff Attack: Canada, U.S. Brace For 'Massive Pain'

**David Lin** (0:00)
The trade war between the US and Canada, two of the largest trading partners on Earth, just heated up to a whole new level. On Tuesday, August 25th, Canada retaliated against US tariffs with its own fight, announcing retaliatory tariffs on roughly US$20 billion of US imports, after President Donald Trump imposed 50% tariffs on a similarly valued basket of Canadian goods last weekend. The Canadian countermeasures announced on Tuesday will take effect on September 8th and will apply tariffs of 15%, 25%, and 50% to more than 700 US products, including steel, dairy, electronics, appliances, agricultural equipment, pulp and paper, seafood, and other consumer goods. Ottawa says these measures are designed to match Washington's new tariffs dollar for dollar. And I'll put the full list of products to be tariffed in a link in the description down below because it's quite extensive and very detailed.
This retaliation was a response to new US tariffs that took effect at 12:01 a.m. on August 22nd and applied to more than 550 categories of Canadian goods worth about $20 billion US annually where roughly 5% of Canada's exports to the United States. They include products ranging from honey and wine to clothing, furniture, electronics, cosmetics, sporting goods, and even hockey equipment.
But this move by Canada was already well telegraphed. This was Prime Minister Marconi's response immediately after the 50% US tariffs were imposed on August 22nd.

**Mark Carney** (1:34)
We've consistently proposed long-term partnerships while America has often pursued short-term transactions. The gap between partnership and competitor unfortunately has remained too wide in recent days. So, last evening, I instructed our negotiators to return to Ottawa. We cannot accept what they've offered, and we will not give what they've asked. Canada will match Washington's new tariffs, dollar for dollar, in order to protect Canadian workers, farmers, families and businesses.
Our response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, electronics. In the coming days, we will release details of these new tariff measures, measures which will come into force the Tuesday after Labor Day. Another prominent justification for US tariffs has been their claim that since the United States runs a trade deficit with Canada, we were ripping them off.
But the U.S.'s narrow merchandise trade deficit only exists because the US buys so much of its energy from Canada. Canada fuels American growth, supplying 99% of their natural gas imports, 85% of their electricity imports, 60% of their crude oil imports. I don't think they want us to stop sending any of that energy.

**David Lin** (3:01)
That last sentence about energy exports to the US., that was a threat. But here's Ontario Premier Doug Ford making this threat more clear in plain English.

**Siobhan Wren** (3:10)
And you mentioned that everything remains on the table if things were to get worse.

**SPEAKER_4** (3:14)
What would worse look like?

**Siobhan Wren** (3:15)
Do you have a line in mind already?

**Doug Ford** (3:18)
Well, if it gets really, really bad, I say everything's on the table. I cannot speak for other Premiers.
But a couple of Premiers have a lot of power to protect Canada, massive power.
And I can't speak for them, but we need everyone to be on Team Canada and throw everything in the kitchen sink at them, no matter if it's electricity, if it's fuel, again, if it's potash or uranium. We need to have everything on the table, but we need to buy in from coast to coast to coast. And we'll work together with the other Premiers. I know the Prime Minister will. But we could put massive, massive pain on the US. They underestimate, President Trump underestimates us. And that's the biggest mistake, underestimating your opponent.

**David Lin** (4:02)
Following Canada's retaliatory tariffs, President Trump took to Truth Social to post this. The United States is giving serious consideration to change the name of Lake Ontario to Lake America, and that we don't expect to be doing much business with Ontario any longer. Thank you for your attention to this matter. Whether or not he's serious about the Lake Ontario to Lake America thing, we'll see. But he was already on a roll on social media even before this. On Monday, Trump responded to Ford's remarks with a lot of strong language of his own, saying on Truth Social that this is lots of bluster from Doug Ford, who is a premier of the Canadian province of Ontario, but who is better known as the less charismatic, intelligent and overall unimpressive brother of the late great Rob Ford. America has been carrying Canada for decades, but no longer. The USA will always be far bigger, richer, and stronger than Canada. Without the United States, Canada couldn't survive. It's where they get all of their money, and because of their current bad leadership, primarily Governor Carney and his flunky Ford, they would not be allowed to keep taking advantage of the United States. They're key to survival. Remember, much of the electricity, oil, and gas that Canada gets is transported through the USA. Someone should get these clowns to fall into line, or the consequences for Canada will be far worse. Canada's unemployment rate is now at 10% and rapidly rising. Their businesses are fleeing for the United States, and it's all because of their failed policies and inept leadership. The days of ripping off our farmers and other businesses are over.