Canada has introduced retaliatory tariffs on roughly $20 billion of American goods, alongside new support for businesses and workers, as Washington and Ottawa move further into a trade dispute between the two countries.
The measures, announced on Tuesday, match the latest U.S. duties on a dollar-for-dollar basis. Canada said the counter-tariffs will apply from September 8 and will cover imports across around 700 product categories.
Tariffs Begin On September 8
Canada’s retaliation comes after the Trump administration imposed new 50% tariffs on $20 billion of Canadian imports, effective from Saturday, following talks between the two countries that ended without agreement.
Canada’s new duties run at three rates, depending on the product. The government said imports subject to the package will face 15%, 25% or 50% tariffs.
Finance Minister François-Philippe Champagne said the response would be paired with support aimed at protecting workers, farmers, families and firms. He said Canada would apply counter-tariffs “dollar-for-dollar” and provide a “multi-billion” assistance package in parallel.
The White House and the Office of the U.S. Trade Representative did not immediately respond to a request for comment.
Scope Of Goods And Sector Impact
Canada said the counter-tariffs were calculated using 2024 trade figures. The affected goods account for nearly 4.5% of Canada’s imports from the United States.
The Canadian measures include a 50% tariff rate on steel, aluminium, furniture and clothing. A 25% rate will apply to cheese, appliances and some seafood, while a 15% rate covers electronics and tools.
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Industry analysis suggests the U.S. tariffs are narrower in relative terms, affecting about 5% of Canada’s exports to the United States. However, trade analysts said the impact could be concentrated in sectors already under pressure, including wood products such as kitchen cabinet manufacturers.
Canada’s list of retaliatory items also includes prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper products, carpets and clothing.
Political Pressure Cited By Ministers
Industry Minister Mélanie Joly said the Canadian tariffs were designed mainly to protect domestic businesses, but also to increase leverage ahead of U.S. midterm elections on November 3.
Joly said Canadian retailers should ensure competitors do not access the Canadian market “in a better way than” their own products. She added that some of the targeted goods were selected to apply pressure to states in the United States.
C$7.5 Billion Support Package
Alongside the tariffs, Canada unveiled a C$7.5 billion package of measures intended to support small and medium-sized businesses, with funding focused on improving company cash flow and backing workers affected by the new duties.
A federal lender, the Business Development Bank of Canada, will provide part of the assistance, including interest-free loans ranging from C$2.5 million to C$5 million.
Joly said businesses would not be required to repay for 36 months, a period that would extend through to the end of the Trump administration’s term.
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26 August 2026
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