Canada imposes retaliatory tariffs on $20 billion of US products

Tuesday 08 September 2026 - 15:28

By: Azzat Manal

Canada imposes retaliatory tariffs on $20 billion of US products

Canada has brought a new package of retaliatory tariffs on selected US imports into force, escalating trade tensions with Washington following the latest round of American duties imposed on Canadian goods.

The measures, which took effect on Tuesday, apply tariffs ranging from 15% to 50% on US products worth approximately $20 billion, or about C$27.6 billion. The targeted goods include steel, dairy products, electronic equipment and pulp.

The Canadian government said the value of the products covered by the countermeasures was designed to broadly match, dollar for dollar, the Canadian goods that Washington subjected to 50% tariffs from August 22.

Canadian Finance Minister François-Philippe Champagne said the targeted measures were intended to shield Canadian workers, farmers, fishers, families and businesses from the impact of US trade restrictions. The government also aims to help domestic producers remain competitive against American imports in the Canadian market.

Ottawa has simultaneously unveiled financial support worth C$7.5 billion to help Canadian companies manage the economic impact of the trade dispute. The package includes measures to improve business liquidity, strengthen unemployment support and establish an Economic Diversification Fund aimed at helping Canadian companies expand into new export markets.

The latest action follows unsuccessful trade negotiations between Canada and the United States and Washington's decision to impose 50% tariffs on around $20 billion worth of Canadian products.

The dispute is also expected to intensify in the months ahead. US President Donald Trump has announced plans for an additional 50% tariff on Canadian-made cars, trucks, auto parts and steel starting January 1, 2027.

The escalating measures highlight the growing strain in one of North America's most important trading relationships, with businesses on both sides facing higher costs and increased uncertainty over future cross-border commerce.