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Canada Escalates Trade War With New US Counter-Tariffs

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Canada’s retaliatory tariffs on a range of American imports took effect on Tuesday, with no sign of a trade deal between Ottawa and Washington.

The counter-tariffs will apply to nearly C$28bn (£20bn; $15bn) worth of US goods, including items from steel and furniture to cotton T-shirts. Tariffs will reach as high as 50%, affecting hundreds of products coming from the United States from midnight on Tuesday, as Canada seeks “dollar-for-dollar” responses to the latest US measures.

Counter-Tariffs Apply to US Goods

Among the listed imports were fresh fish and lobster. However, Canada later dropped those items after pushback from its seafood industry, underlining the balance it is trying to strike while responding to its largest trading partner.

Both sides have said they want to reach an agreement, but talks have made no progress since they collapsed in late August.

Prime Minister Mark Carney said last week that Canada is still looking for a “durable” deal that serves both countries’ interests.

“We’re ready to sit down and and strike that deal when the Americans are ready,” he told reporters.

US Says Deal Offer Was Rejected

The US trade representative, Jamieson Greer, said on Thursday that responsibility for moving matters forward lay with Canada.

Greer said in an interview with Fox News that the US had put forward what it described as the best deal, adding that Canada “looked at it square in the face and turned around”. In the same interview, he said communications with Canadian counterparts had been limited since the talks broke down.

In an interview with Canadian broadcaster CBC, Greer also cautioned against further retaliation and suggested the US could respond by banning imports of some Canadian products.

His warning comes as President Donald Trump escalated pressure beyond tariffs. On Monday, Trump threatened to halt all US business with Bombardier, the Canada-based aircraft maker, unless it moved manufacturing to the US.

Bombardier is among the country’s largest companies, contributing more than C$7bn to Canada’s annual GDP in 2024, according to a report commissioned by the company and prepared by PwC.

Trump also posted criticism of Canada on Truth Social over the weekend, including a claim that Canada’s exchange rate with the US was “unacceptable”, and a map of North America showing Canada and Mexico, alongside Greenland, under a US flag.

Canada and the US run the world’s largest bilateral trading relationship, worth nearly $900bn in 2025.

Broader Tariff Measures and Economic Concerns

Tuesday’s Canadian counter-tariffs come on top of existing retaliatory taxes that Ottawa has already applied to finished US cars and trucks that do not meet terms under the USMCA trade pact—called USMCA in the US and CUSMA in Canada.

On the US side, Washington has an existing 25% duty on Canadian cars and trucks, along with taxes on Canadian steel, aluminium and lumber. In late August, Trump also imposed new 50% tariffs on additional goods including dairy, alcohol, hockey sticks and perfume.

While polls suggest many Canadians support retaliation, economists have warned that the new counter-tariffs could feed through to prices for everyday items such as clothing, food and furniture.

The Canadian Chamber of Commerce urged a “surgical” approach, warning against endless escalation. Its chief executive, Candace Laing, told the BBC that businesses understood retaliation but did not want a prolonged spiral, while adding that firms were preparing for the dispute to last.

In fisheries, the need to avoid unintended damage to Canada’s own economy contributed to the removal of dozens of seafood items from the counter-tariff list. The lobster sector in both countries is closely linked, with American-caught lobster frequently sent north to be processed before being shipped back to the US for sale.

Ahead of the latest tariff wave, Canada showed some resilience. GDP grew 3.3% in the second quarter, and Canada added 181,000 jobs between April and July, although around 41,000 jobs were lost in August—a period that coincided with new US tariffs and the collapse of talks.

Canada’s government attributed a modest rise in manufacturing to consumers and businesses buying more domestically produced goods. Carney has also said Canada will diversify trade away from the US, with July data showing the share of exports bound for the US falling to 66% from an average of 75% before the trade war.

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8 September 2026


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Thank you Canada .

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Canada to Trump. Drop the tariffs and let us keep taking advantage of you like we did under the Big Guy or we'll scweam and scweam until we faint and collapse🤣

Canada will fold like a blanket. Tomorrow, next week, next month. Who knows when, but fold they will. Globalist scrote Carney is way out of his depth here with his farcical David & Goliath dance.

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Google up Columbia River Treaty of 1964, Sunny. Canada holds all the cards. And I bet they won't fold.

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Never forget. Canada needs America more than America needs Canada. Always been that way.

I do like their maple syrup but Maine maple syrup is equally good.

Notice how MAGA women are so much hotter than leftist’s women.

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Edited by HolmesEquivelant

  • Popular Post

Canada needs america most....

Ok.... tariffs on Oil and Potash pls

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10 hours ago, SunnyinBangrak said:

Canada to Trump. Drop the tariffs and let us keep taking advantage of you like we did under the Big Guy or we'll scweam and scweam until we faint and collapse🤣

Canada will fold like a blanket. Tomorrow, next week, next month. Who knows when, but fold they will. Globalist scrote Carney is way out of his depth here with his farcical David & Goliath dance.

David won!

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DJT is pulling on the leg accelerating the demise of the once great country of USA. See what rotting from inside looks like.

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Well done, Canada.

A deal is when both sides agree, an offer is what is made and a negotiation is what both sides do to reach a deal. A deal is not what the americans put on the table it was an offer.

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Those nasty Canadians abiding by a trade agreement signed by Donald J. Trump. How dare they!

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The US can stop buying Canada's heavy tar sands oil. That will create a huge problem for the WEF shill, Carney!

I do like Canadian Bacon too. I’m willing to give it up for Oscar Meyer Bacon only.

Their poster child for Canadian Bacon isn’t very happy.

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4 minutes ago, 300sd said:

The US can stop buying Canada's heavy tar sands oil. That will create a huge problem for the WEF shill, Carney!

Problem for the US refineries too that are built specifically to process the Canadian heavy, sour crude oil. Does the US refineries have that spare $130 to $200 billion for conversion to process the domestic oil? Even with the conversion, it is not economically efficient and costly to use the domestic light crude.The easy solution is for the man-child President to stop being petulant and back off this insane tariff war with our best ally. No one win in a tariff war while citizens suffer.

Edited by Eric Loh
wrong words

I hope this brings down the globalist leftist shill, Carney.

He's had it coming for a long time.

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What if Canada flips the switch on the electricity to American states

opposite Canada , they only have to hold out for another 2 years ,

sooner if the Dear leader eats another McDonalds,that could do it.

Canada elbows up , the rest of the World is with you....

regards worgeordie

6 minutes ago, worgeordie said:

What if Canada flips the switch on the electricity to American states

opposite Canada , they only have to hold out for another 2 years ,

sooner if the Dear leader eats another McDonalds,that could do it.

Canada elbows up , the rest of the World is with you....

regards worgeordie

With all due respect, it's time the Canadian babies started to use some common sense! They have trouble trading between provinces. Imagine other countries trying to trade with Canada! If the US needs water and Canada doesn't want to sell any, then they will take it. Shut off the electric....sure. This trade war is a fools game and Carney is the fool. Canadians suffer. "Elbows up", no it should be smarten up.

5 hours ago, Celsius said:

Canada needs america most....

Ok.... tariffs on Oil and Potash pls

This isn't about potash and oil. It's about the US midterms and Carney's political future.

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51 minutes ago, JonnyF said:

I hope this brings down the globalist leftist shill, Carney.

He's had it coming for a long time.

I wouldn't bet on Carney going down with an approval rating of 70%. In fact it will likely to be Trump departing soon with only 33% approval rating. Plus the chronological and biological age is very much against Trump versus Carney. Time to leave the pasture Trump.

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1 minute ago, Eric Loh said:

I wouldn't bet on Carney going down with an approval rating of 70%. In fact it will likely to be Trump departing soon with only 33% approval rating. Plus the chronological and biological age is very much against Trump versus Carney. Time to leave the pasture Trump.

Wait until the reality of Carney's posturing really takes hold.

He's writing cheques with other people's money.

Typical leftist.

  • Popular Post
5 minutes ago, JonnyF said:

Wait until the reality of Carney's posturing really takes hold.

He's writing cheques with other people's money.

Typical leftist.

You worry too much. Canada has better overall economics. Debt to GDP, interest rates, inflation, bond yields, budget management and new trading alliances with EU, Asia and the middle-east are better than US alienation of traditional trading partners. He is spending for domestic infrastructures (not monuments), global diversification and local business support. He is not grifting like Trump. The Maga right has been taken for a ride by Trump and that include you.

Edited by Eric Loh
add word

6 hours ago, Celsius said:

Canada needs america most....

Ok.... tariffs on Oil and Potash pls

You forgot electricity ,wood water and aluminium component aluminium to build aeroplanes

No mention in thr arical about Canadas deal with china and EVS

Trump could no work out how the get out of a wet paper bag he is dealing with a much better man in Carney. Yes car component manufacturing in Canada has taken a hit but so has Americans car industry because they dont have the parts that Canada supplied. Trump has shot himself in the foot again.

I'm afraid Fox News isn't covering this...

They're probably just showing B-roll of the Rockefeller center Christmas tree from last year.

They must be in full blown panic mode hoping their senior citizens viewers are so zoned out on vile hatred and powerful pharmaceuticals to notice 😄

18 hours ago, webfact said:

Canada’s retaliatory tariffs

Is not an escalation but a balanced retaliation.

Why should Trump care since he says US doesn't need trade with Canada?

Canada or Taxania as I like to call it, has something that the US dearly wants, greatest abundance of fresh water in the world.

9 minutes ago, koolkarl said:

Canada or Taxania as I like to call it, has something that the US dearly wants, greatest abundance of fresh water in the world.

Lots of salty Liberal tears though...

1 hour ago, koolkarl said:

Canada or Taxania as I like to call it, has something that the US dearly wants, greatest abundance of fresh water in the world.

The Great Lakes are 85 percent of North America's surface fresh water supply. The US already has access to all them.

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