in brief
- Donald Trump threatened to rename Lake Ontario as a trade dispute with Canada worsened.
- Canada announced 15 to 50 per cent counter-tariffs to protect its domestic workers and industries.
President Donald Trump is considering changing the name of Lake Ontario to "Lake America" as the trade war between the United States and Canada intensifies.
"The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don't expect to doing much business with Ontario any longer," Trump wrote on social media. Ontario is Canada's most populous province and is home to the country's auto industry.
The threat is reminiscent of the Republican president's unilateral action in 2025 by executive order to rename the Gulf of Mexico the Gulf of America.
The combative rhetoric between the two countries has escalated, with Trump telling Canadian leaders Tuesday to "fall in line" or face consequences "far WORSE" than existing tariffs.
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He also threatened new 50 per cent tariffs on Canadian vehicles, vehicle parts and steel, while Prime Minister Mark Carney said US trade demands showed that Washington wanted to "destroy our major industries," including vehicle manufacture, steel and aluminium.
Canada hits back at US tariffs
On Wednesday, Canada announced counter-tariffs on US goods, ranging between 15 and 50 per cent, intensifying the trade war between the historically close allies.
Ottawa's retaliation will take effect on 8 September, a timeframe that Carney had earlier outlined after Trump's 50 per cent duties came into effect on Sunday.
The steep US tariffs hit approximately US $20 billion (AU $20B) in Canadian goods — about 5.5 per cent of its US exports — after trade negotiations collapsed at the eleventh hour. A wide range of sectors including wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment are affected.
"Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses," Carney said at a news conference. "We cannot accept what they have offered, and we will not give what they have asked."
Under Canada's planned response, US steel and aluminium products previously subject to a 25 per cent duty will soon face 50 per cent tariffs. Goods facing 25 per cent tariffs include appliances, dairy products like cheese, as well as certain steel and aluminium derivative products. Overall, these formed about 7.3 per cent of Canada's imports from the US in 2024.
Canada's government also announced a CAD $5.4 billion (AU $5.4B) aid package for impacted firms and workers.
"This is an unprecedented challenge imposed on Canada. But Canada will meet the moment," Finance Minister Francois-Philippe Champagne said. "I think what Canadians can see this morning is that we stand united. Canada must respond, and today we are, in a proportionate, targeted and strategic way."
'We need our neighbour'
Canada and the US share one of the world's largest trading relationships, with deeply integrated supply chains across autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border. Businesses and consumers are caught in the middle, facing uncertainty about how much prices might increase.
Michael Howard II, owner of a furniture business in Warren, Michigan, told the Agence France-Presse (AFP) news agency that the tariffs would hamper the "ability for us to put food on the table for our family, but also impacts the ability for us to give back to our community."
"To say that we don't need Canada is just disingenuous. It's dishonest. And it's just absolutely not truthful. We need our neighbour, but also they need us," Howard added.
Over the weekend, Carney said US negotiators sought restrictions on Canadian trade deals with other countries at the last minute, alongside threats to Quebec culture.
"An attitude at the negotiation table that Canada is a subsidiary of the United States" was "not something we're going to accept", Carney said.
Trump pushed back on the claim on Wednesday, writing: "I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing."
"This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!"
— With additional reporting from the AFP and Reuters news agencies.
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