The ongoing escalation of trade friction between the US and Canada prompts Canada to launch reciprocal countermeasures.

(1) The US-Canada trade negotiations have broken down, with the US imposing tariffs on approximately $28 billion worth of Canadian goods, affecting a large number of small and medium-sized manufacturing enterprises. (2) Canada will implement countermeasures starting September 8, doubling tariffs on US steel and aluminum to 50%, and adding tariffs on various categories such as US dairy products and electronics. (3) The US has threatened to further increase tariffs on Canadian automobiles in January next year, with industry experts warning of significant impact on Canada's auto industry. (4) Canada has launched a C$7.5 billion support plan to aid affected businesses and employment groups, while promoting industrial armament investment and expanding export markets beyond the US. (5) Institutions estimate that if the US-Canada free trade agreement collapses completely, Canada's GDP could lose $402 billion by 2036, with an average annual loss of 163,000 jobs. (6) Canadian politicians have proposed stepped-up countermeasures, including imposing export taxes on core resources such as electricity, potash, and energy exported to the US to exert pressure.