Canada announces retaliatory tariffs on $27.6 billion of US goods

Canada announced on August 25, 2026, that it will impose retaliatory tariffs covering C$27.6 billion of imports from the United States, matching the new American duties dollar for dollar.

The counter-tariffs take effect on September 8 and apply rates of 15, 25 and 50 per cent to around 700 products. Goods facing 50 per cent duties include steel and aluminium products, furniture, and clothing. Those at 25 per cent include dairy products such as cheese, appliances, fish and seafood, and certain steel derivatives. Electronics and tools face 15 per cent.

The move follows the United States imposition of 50 per cent tariffs on about $20 billion to $27.6 billion of Canadian goods that took effect on August 22 after trade talks collapsed. Canadian Prime Minister Mark Carney had suspended negotiations, saying last-minute US term changes were unfair and uneconomic.

Alongside the tariffs, Canada announced a C$7.5 billion package of measures to support workers and businesses. This includes assistance for small and medium-sized firms, financing for cash flow, and help for workers affected by the trade measures.

The sectors targeted by Canada include those most impacted by the US actions: steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The two economies remain closely integrated in manufacturing, energy and agriculture, so the exchange of tariffs is expected to raise costs on both sides of the border.

US officials had described the Canadian decision to suspend talks as a missed opportunity. President Donald Trump had earlier threatened further 50 per cent tariffs on Canadian vehicles, auto parts and steel starting in 2027.

Canadian officials framed the response as a focused defence of industries harmed by the US measures while protecting sovereignty and workers.