Canada on Tuesday (August 25) announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of US goods, matching Washington’s latest duties dollar-for-dollar as the trade dispute between the two neighbours escalates.
The new Canadian tariffs will take effect on September 8 and will impose duties of 15%, 25% and 50% across around 700 products imported from the United States, according to a government statement.
The move follows US President Donald Trump’s decision to impose new 50% tariffs on about $20 billion of Canadian imports from Saturday, after talks between the two countries failed to avert the measures.
Canada announces C$7.5 billion support package
Quick answers to key questions
What are the new tariffs Canada is imposing on US goods?⌵
Canada is imposing retaliatory tariffs on C$27.6 billion worth of US goods, effective September 8, with duties of 15%, 25%, and 50% across approximately 700 products.
Why is Canada implementing retaliatory tariffs against the US?⌵
Canada’s retaliatory tariffs are a direct response to the US imposing 50% tariffs on around $20 billion of Canadian imports after negotiations broke down, escalating the trade dispute.
How will the new tariffs affect US exports to Canada?⌵
The new Canadian tariffs aim to put pressure on US exporters while limiting the impact on Canadian consumers and businesses, potentially leading to higher costs for US goods in Canada.
Should Canadian businesses be concerned about the trade war?⌵
Yes, the escalating trade war could impose high costs on Canadian businesses, particularly in industries such as automotive, steel, and aluminum, leading to job losses and increased prices.
What products will be affected by the new Canadian tariffs on US imports?⌵
Affected products include steel and aluminum with a 50% tariff, cheese and appliances with a 25% tariff, and electronics and tools with a 15% tariff.
Alongside the retaliatory tariffs, Ottawa announced a C$7.5 billion package of new and enhanced measures aimed at cushioning businesses and workers from the impact of the trade war.
The package includes assistance for small and medium-sized businesses, financing to help companies manage cash flow and support for workers who could be affected by the new tariffs.
“Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses,” Finance Minister François-Philippe Champagne said.
The Canadian government said the tariffs had been designed to limit their impact on Canadian consumers and businesses while still putting pressure on US exporters.
Which US goods will face Canadian tariffs?
The new duties cover a broad range of products.
50% tariffs: Steel, aluminium, furniture and clothing
25% tariffs: Cheese, appliances and some seafood
15% tariffs: Electronics and tools
The measures mark a significant escalation in the trade confrontation between the two countries, whose economies are closely integrated across manufacturing, energy, agriculture and other sectors.
New low in Canada-US relations
The tit-for-tat tariffs represent a new low in relations between the United States and Canada, with both governments now imposing increasingly broad trade barriers.
Trump’s latest tariffs came after negotiations broke down, while Canadian officials have vowed to protect domestic businesses and workers from the fallout.
The dispute also comes amid increasingly hostile rhetoric between Trump and Canadian Prime Minister Mark Carney.
