Canada has announced new retaliatory tariffs on about $20 billion worth of goods from the United States following a breakdown in trade talks between the two countries.

The measures match “dollar for dollar” the latest U.S. tariffs imposed on Canadian goods by President Donald Trump. The new Canadian tariffs will affect more than 700 American products and are scheduled to take effect on September 8.

The duties range from 15% to 50% and will apply to a wide range of goods. These include dairy products, seafood, appliances, clothing, wood, and paper products.

Canada will also impose 50% tariffs on American steel and aluminum. The new rate doubles the current tariff on those products.

The Canadian government said the measures respond to recent U.S. tariffs on Canadian steel, aluminum, lumber, and other goods.

Finance Minister François-Philippe Champagne said Canada had chosen to respond after the United States made demands that Ottawa considered unreasonable during trade negotiations.

The two countries had been working toward a possible trade agreement. The new tariffs could have been avoided if they had reached a deal before the U.S. duties took effect.

However, the talks collapsed last week. Canada said the United States made unreasonable demands, while the Trump administration accused Canada of making last-minute changes that disrupted the negotiations.

The latest move marks another escalation in the trade dispute between the two longtime allies.

Canada also announced a $7.5 billion support package for businesses and workers affected by the U.S. tariffs.

Prime Minister Mark Carney acknowledged that Canada’s decision to retaliate could also affect consumers. He said the tariffs could raise costs and reduce choices for Canadians.

The growing trade dispute has also raised concerns among businesses. Companies have warned that higher tariffs could increase costs and make it more difficult for some businesses to trade across the border.

Carney has also pushed for Canada to reduce its dependence on the United States by diversifying the country’s economy.

Meanwhile, Trump criticised Canada in several social media posts on Tuesday. He suggested the United States could halt business with Ontario and accused Canada of unfairly targeting American farmers.

Canada’s Trade Minister Dominic LeBlanc said Ottawa still hopes the two countries can reach an agreement.

“Our preference was to find a deal that benefits both countries,” he said. However, he added that Canada would not simply wait for the United States to act.

The new tariffs now set the stage for another chapter in the growing trade conflict between Canada and the United States.