Canada has announced retaliatory tariffs on about $20 billion worth of US goods in response to the tariff policy of the Donald Trump administration. The new Canadian tariffs will apply to more than 700 US products, including steel, dairy products, household appliances, agricultural equipment, electronics, clothing and seafood.
Canada’s new tariff list includes industrial products as well as a range of commonly used goods. These include steel and aluminium, household appliances, agricultural equipment, furniture, clothing, electronics, cheese and other dairy products, fish and seafood, cosmetics and toilet paper.
Tariff rates will reach up to 50 percent on some US goods, while several other products will face tariffs of 25 percent and some categories will be subject to 15 percent duties. Steel and aluminium products exported from the US to Canada are expected to be among those most affected.
According to Canadian officials, the measures are not aimed solely at increasing government revenue. The stated objective is to protect domestic companies from the impact of US tariffs and reduce imports from the US.
The Canadian response follows the imposition of heavy tariffs on Canadian products by the Trump administration. The US administration introduced new tariffs on Canada after trade negotiations failed to reach an agreement.
Canadian Prime Minister Mark Carney has taken a firm position on US trade policy and alleged that US demands could harm Canada’s key industries. He indicated that Canada would continue to take necessary measures to protect its economy and domestic industries.
US President Donald Trump has maintained his position in the dispute with Canada. He called on Canadian leaders to accept US demands and warned that failure to do so could result in economic action more severe than the existing tariffs.
The Trump administration has also warned of an additional 50 percent tariff on Canadian vehicles, vehicle parts and steel. The measures could increase trade uncertainty in the automobile and manufacturing sectors.
Meanwhile, Trump’s comment about considering changing the name of Lake Ontario to ‘Lake America’ has also triggered controversy. The remark came amid differences with Ontario Premier Doug Ford.
The new retaliatory tariffs announced by Canada will take effect on September 8, 2026. Officials said Canada has set retaliatory rates equal to US tariffs in some cases.
Several products that previously faced a 25 percent tariff could now be subject to tariffs of up to 50 percent. Canada’s existing retaliatory tariffs on US vehicles will remain in place for now, potentially adding pressure on the automotive sectors of both countries.
Amid the tariff dispute, the Canadian government has announced an assistance package worth about 7.5 billion Canadian dollars for affected businesses and workers. The government said retaliatory tariffs could increase costs for some companies and consumers, while efforts are being made to keep the impact on the broader economy under control.
According to the Canadian government, more than 30 billion Canadian dollars in assistance has been made available since the beginning of 2025 to mitigate the impact of tariffs.
