Canada retaliatory tariffs ranging from 15% to 50% on roughly C$27.6 billion, or $20 billion, worth of American imports took effect at 12:01 a.m. ET on Tuesday, deepening the trade dispute between Ottawa and Washington.
The measures cover hundreds of US products and were introduced after trade talks between the two countries failed to produce an agreement. Canada said the tariffs match the latest US duties on Canadian goods on a dollar-for-dollar and rate-for-rate basis.
Prime Minister Mark Carney said Canada would respond to Washington’s tariffs to protect Canadian workers, farmers, families and businesses.
Hundreds of US Products Face New Duties
The new Canada retaliatory tariffs apply at rates of 15%, 25% and 50% across a wide range of American goods.
Products facing the highest 50% tariff include American milk, perfume, video game consoles, golf clubs, fishing rods and aluminium.
Cheese, carpets and household appliances, including cookers and air conditioning units, are subject to a 25% duty. Forklifts and industrial moulds face tariffs of 15%.
The broader list also includes steel, furniture, clothing, electronics, machinery, textiles, consumer products and agricultural equipment. Canada removed some seafood products from its initial tariff list following concerns raised by its lobster industry.
The targeted goods account for nearly 6% of annual US exports to Canada, according to the Associated Press. Economists said manufacturers in Michigan and Indiana, along with dairy producers in Wisconsin and Vermont, could be particularly affected.
Trade Talks Remain Suspended
The latest escalation follows President Donald Trump’s decision to impose 50% tariffs on Canadian goods on August 22 after trade negotiations collapsed.
Carney suspended trade talks on August 21, saying US negotiators had introduced last-minute restrictions on Canada’s ability to make trade agreements with other countries. He said last week that discussions could resume when the US side became serious about negotiations.
There are currently no negotiations scheduled between the two countries. US Trade Representative Jamieson Greer told CBC News that there were no “open channels” between the two sides, while Treasury Secretary Scott Bessent rejected the suggestion that the situation amounted to a trade war.
Trump Threatens Action Against Bombardier
Trump also threatened on Monday to block sales by Canadian aircraft maker Bombardier in the United States and called for the company to move manufacturing south.
Bombardier responded that it supports tens of thousands of jobs across the United States and spends more than $2.5 billion annually with around 2,800 American suppliers across 47 states.
Trump has also threatened to raise tariffs on Canadian-made cars and auto parts to 50% starting in January. Canada’s economy grew 3.3% in the second quarter, but the country lost around 41,000 jobs in August as the trade dispute intensified.
Ottawa has announced a C$7.5 billion aid package to support businesses and workers affected by the dispute.
Q1. What are Canada’s new retaliatory tariffs on US imports?
Canada has imposed tariffs of 15%, 25% and 50% on roughly C$27.6 billion ($20 billion) worth of American goods.
Q2. When did Canada’s retaliatory tariffs take effect?
The tariffs took effect at 12:01 a.m. ET on Tuesday.
Q3. Which US products face Canada’s highest 50% tariff?
American milk, perfume, video game consoles, golf clubs, fishing rods and aluminium face the 50% tariff rate.
Q4. Why did Canada impose retaliatory tariffs on the United States?
Canada said the measures match US tariffs on Canadian goods on a dollar-for-dollar and rate-for-rate basis.
Q5. Are Canada and the United States currently holding trade negotiations?
No. Trade talks remain suspended, and no negotiations are currently scheduled.
