The United States imposed a 50% tariff on $20 billion worth of Canadian goods, threatening to expand these tariffs to include automobiles and steel. In response, Canada announced retaliatory tariffs, also up to 50%, on an equivalent value of American products. These Canadian tariffs will be implemented on approximately 700 products starting September 8, with steel and aluminum tariffs doubling to 50%. The retaliation includes tariffs on tools, clothing, forestry products, and consumer goods like home appliances. Prime Minister Mark Carney had previously warned that Canada would match US tariffs "dollar for dollar." A key point of contention in trade talks was the US's 25% tariff on automobiles, a significant Canadian export. Canada will maintain its 25% retaliatory tariff on US-made cars. It will also continue a system allowing Canadian car manufacturers to import US vehicles tariff-free within certain limits. Despite the tariffs, Canada imports significantly more goods from the US than it exports, around $272 billion annually. While Canada's retaliatory tariffs are expected to raise costs for Canadians, the economic impact is anticipated to be minor compared to the US economy.