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It's all part of Ottawa's plan to strike back at the U.S.in response to hefty tariffs on steel and aluminum, 25 per cent and 10 per cent respectively, imposed last month by President Donald Trump.

Prime Minister Justin Trudeau's government released the final list of items that will be targeted from July 1. Canada buys more American steel than any other country in the world, accounting for 50 per cent of USA exports. It is with regret that we take these countermeasures, but the USA tariffs leave Canada no choice but to defend our industries, our workers and our communities, and we will remain firm in doing so.

Food and consumer items - everything from dishwashing liquid and powerboats to yogurt, ketchup and whiskey - will face 10 percent tariffs.

"Canada has no choice but to retaliate with a measured, perfectly reciprocal dollar-for-dollar response - and that is what we are doing", Freeland said. The idea is to have Canadians buy fewer of the American products or buy similar non-American products.

Higher tariffs would "lead to a smaller GM, a reduced presence at home and overseas for this iconic American company, and risk less - not more - USA jobs", the largest U.S. automaker said.

Rising trade tension between Canada and the United States and a pushback from USA businesses on further tariffs, including on imported autos, pressured a White House that has championed an "America First" protectionist stance since Trump took office in January 2017.

The levies will remain in effect until the U.S. eliminates its tariffs on Canadian steel and aluminium.

Most likely even more tariffs. That threat could be a negotiating ploy to restart talks on the North American Free Trade Agreement.

Freeland has insisted that Canada introduced stronger safeguards on steel well before the USA imposed the tariffs.

"We will not escalate and we will not back down", she said, while noting that this trade action was the strongest Ottawa has taken since World War II.

Jim Watson, a Liberal Party politician serving as Ottawa's mayor since 2010, told reporters Thursday that he's boycotting the USA ambassador's annual Independence Day party over the Trump administration's recent anti-Canadian sentiments.

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Trump himself has already threatened to slap tariffs on the automotive sector, which could prove far worse for the Canadian economy than the steel and aluminum duties.

Ohio-based trade lawyer Dan Ujczo said he believes there's a significant chance Trump will introduce auto tariffs to some degree, although he predicted they could target the European Union rather than Canada.

"I don't think we'll see any reaction from the Trump administration".

TORONTO - Canada announced billions of dollars in retaliatory tariffs against the USA on Friday in a tit-for-tat response to the Trump administration's duties on Canadian steel and aluminum. "It would change the calculus", he said.

The Trudeau government's decision to stand up to Trump with countermeasures has attracted wide support in Canada.

"The measures announced today will help strengthen the competitiveness of Canada's steel and aluminum companies and contribute to economic growth while increasing the capacity of the industries to innovate, grow value added, support product and market diversification, and create and sustain jobs for Canadians". Yes, it makes the story seem a bit silly when you learn the US exports canoes and maple syrup into Canada.

Ottawa is also promising to boost funding for the provinces and territories to increase job and training programs.

Nevertheless, the funding to help companies build new markets for their products "could be just the kick in the trousers companies need", he added.

Mr Mnuchin lashed out against a report by the Axios news website that said Mr Trump frequently told advisers he wanted the United States to quit the WTO, a move that could devastate global commerce. The aim is to help businesses retain skilled workers and avoid layoffs during any rough patches ahead. They've given the president a long leash and will continue to do so.

The Government of Canada will invest $50 million over five years to help Canadian companies diversify their exports to take advantage of new trade agreements, such as CETA and CPTPP.