Canada announced retaliatory tariffs on C$27.6 billion, or about US$20 billion, of annual imports from the United States on Tuesday, escalating a dispute between the closely integrated trading partners after bilateral negotiations collapsed. The measures will begin September 8 and apply rates of 15%, 25% or 50% to roughly 700 products, according to Canada's Department of Finance.
Ottawa said the response matches Washington dollar for dollar and rate for rate. The United States imposed 50% duties on C$27.6 billion of Canadian products on August 22 after the two governments failed to reach a broader trade agreement. The Canadian government said the new U.S. terms demanded too much and offered too little, while Reuters reported that the American measures cover about 5% of Canadian exports to the United States.
The Canadian list focuses on steel, aluminum, dairy products, appliances, agricultural equipment, pulp and paper, electronics and other goods. Steel and aluminum products already carrying 25% Canadian duties, along with furniture and clothing, will face 50%. Appliances, cheese, fish, seafood and some metal derivatives will carry 25%, while selected electronics and tools will be taxed at 15%, government documents and Reuters reported.
Finance Minister François-Philippe Champagne said the countermeasures were designed to protect workers, farmers, families and businesses and to prevent U.S. competitors from gaining an advantage in the Canadian market. Industry Minister Mélanie Joly urged retailers and consumers to favor domestic products. AP reported that the expanded duties also reach everyday purchases including cosmetics and toilet paper, showing how the conflict has moved beyond industrial inputs.
Canada also unveiled C$7.5 billion in new and expanded assistance. The package includes C$1.5 billion for regional support to small and medium-sized companies, C$500 million in additional business liquidity, C$2 billion for diversification projects and C$3.5 billion for income support, training, worker retention and retraining. Ottawa said this builds on nearly C$25 billion of support introduced since earlier U.S. tariffs began.
The confrontation threatens supply chains and one of the world's largest bilateral commercial relationships. Reuters said the Canadian measures cover nearly 4.5% of the country's imports from the United States, while AP warned that a prolonged dispute could raise costs for companies and consumers on both sides of the border. Existing Canadian counter-tariffs on automobiles remain in place, and Ottawa said it will continue assessing assistance as the September 8 implementation date approaches.
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