Ottawa had already promised a dollar-for-dollar response after Prime Minister Mark Carney declared Canada effectively at war with Washington over tariffs. That promise now has a price tag and a list.

Canada announced retaliatory tariffs on US goods, matching Washington's duties item for item at rates as high as 50 percent, according to the BBC. The list also includes fresh tuna among dozens of other categories, per AP.

C$27.6bn ($19.94bn)New Canadian retaliatory tariffssteel, dairy, fish, furniture, cosmetics and more
C$7.5bnAid package for affected Canadian firms and workers
France 24 / Reuters

Ottawa paired the tariffs with a support package for businesses and workers hit by the dispute, according to France 24.

Why it matters: Canada is the largest single export market for US goods, and steel, dairy and fish tariffs cut into cross-border supply chains built over three decades of continental free trade. A tit-for-tat spiral between two G7 economies raises costs for manufacturers and consumers on both sides and tests whether the USMCA trading bloc can survive a prolonged tariff war.

The legal ground under Trump's tariffs is itself contested: his authority to impose them rests on a law that has never been tested this way in court, the New York Times reports, leaving a question mark over how durable the current tariff regime is regardless of how Ottawa responds.

The rhetoric has sharpened alongside the substance: Trump has suggested the US could rename Lake Ontario 'Lake America' amid the dispute, according to the Washington Post, an escalation in tone that has drawn attention even as the two sides trade tariff lists.