Canada announces retaliatory tariffs on $20 billion worth of US goods, unveils support measures

OTTAWA, Aug. 25 (Reuters) - Canada on Tuesday announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of United States goods, matching dollar-for-dollar new duties imposed by Washington, and unveiled financial support for Canadian businesses and workers caught in the escalating trade war.

The counter-tariffs take effect on U.S. goods from September 8 and will impose duties of 15%, 25% and 50% across 700 products imported from south of the border, a government statement said.

In terms of financial support for affected workers and industries, Canada announced a C$7.5 billion package of new and enhanced measures including support for small and medium-sized businesses, a stream for funding cash flows of companies, and support for workers who could be at risk due to the new tariffs.

From Saturday, President Donald Trump's new 50% tariffs across $20 billion of Canadian imports took effect after talks between the two countries to avert the tariffs collapsed.

The new tit-for-tat tariffs mark a new low in the Canada-U.S. relationship.

"Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses," Canada's Finance Minister François-Philippe Champagne said.

The new tariffs are designed so that the impact on Canadian consumers and businesses is minimal and could still hit the U.S., a government official said.

The 50% tariffs are on some important sectors such as steel, aluminum, furniture and clothing, 25% tariffs are on cheese, appliances and some seafood, while the 15% tariffs will be on electronics and tools, the official said.