Ottawa, Aug 25 (V7N)- Canada has announced retaliatory tariffs of up to 50 percent on a range of US products in response to new tariffs imposed by the administration of US President Donald Trump.

The Canadian government announced on Tuesday that the counter-tariffs would cover around C$28 billion (US$20 billion) worth of US goods and would take effect on September 8.

The targeted products include steel, furniture, fresh tuna and cotton T-shirts, among other goods. Canadian officials said the list was designed to correspond with Canadian products that are already subject to US tariffs.

Trump imposed tariffs of up to 50 percent on various Canadian products late last week after trade negotiations between the two countries broke down. Washington and Ottawa have blamed each other for the collapse of the talks, with both sides accusing the other of making unreasonable last-minute demands.

Canadian Finance Minister Francois-Philippe Champagne defended the countermeasures, saying Canada had no choice but to respond to the US tariffs.

He said the measures would have a real impact on Canadian workers, businesses and communities, making a response necessary.

Champagne described the new tariffs as strategic and announced an additional C$7.5 billion in assistance for businesses and workers affected by the US measures. The funding will support programmes aimed at preventing job losses and helping companies remain operational.

Economists and business leaders fear that an extended tariff war could hurt both countries. Higher trade costs could disrupt supply chains built over decades, affecting businesses of all sizes and potentially raising consumer prices.

Opinion polls indicate that most Canadians support taking a firm position against the United States. However, opposition Conservative lawmakers have demanded the full text of the draft agreement that was being negotiated with Washington.

Canadian businesses are increasingly concerned about a prolonged dispute with the United States, Canada's largest trading partner, warning that sustained trade restrictions could cause significant economic damage.

Following Canada's announcement, the White House said Washington had offered Canada highly favorable market access during the recent negotiations.

The White House accused Ottawa of choosing "unreasonable demands" and rejecting partnership.

Trump also sharply criticized Canada in posts on Truth Social, claiming that Canada had treated the United States unfairly for decades.

He further threatened to increase tariffs on cars imported from Canada to 50 percent from January 1 next year.

Canadian Prime Minister Mark Carney accused the US administration of attempting to damage Canada's industrial sector, particularly the country's automobile, steel and aluminum industries.

Despite the heated rhetoric, some officials from both countries adopted a more conciliatory tone on Tuesday, raising the possibility that negotiations could resume.

Ontario Premier Doug Ford, who had earlier strongly criticized Trump, said the two sides ultimately want an agreement that benefits both American and Canadian citizens.

The latest dispute has also renewed concerns about the future of the USMCA, the trade agreement linking the United States, Canada and Mexico.

Meanwhile, Mexican President Claudia Sheinbaum has sent Finance Minister Marcelo Ebrard to Washington for urgent discussions amid the growing trade tensions in North America.

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