Canada announced a new round of retaliatory tariffs against the United States on Tuesday, targeting about 700 American products worth C$27.6 billion (roughly US$19.9 billion), according to G1. The measures, taking effect September 8, will carry rates of 15%, 25% and 50%. The announcement came hours after 50% tariffs imposed by Donald Trump's administration on US$20 billion in Canadian goods took effect.
According to the Canadian government, the new countertariffs were designed to have a limited impact on domestic consumers and businesses while increasing pressure on the United States. The 50% tariffs will hit sectors such as steel, aluminum, furniture and clothing. Products like cheese, appliances and some seafood will carry a 25% rate, while electronics and tools will be taxed at 15%, according to a government official cited by Reuters.
"The dollar for dollar value of the countertariffs, together with a multibillion dollar support package, will protect workers, farmers, families and businesses," said Canada's Finance Minister Francois-Philippe Champagne. The government also announced a C$7.5 billion package to support workers and companies affected by the trade dispute, including cash flow financing for small and medium enterprises.
According to BBC Brasil, Canada's Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, struck a firm tone: "we did not ask for this trade conflict, but we are prepared for it." He added: "we are ready to make a good deal, but we will not accept a bad deal. We will not cave, we will not back down, we will build." The government, however, chose not to include strategic sectors for the US, such as energy and potash, of which Canada is the world's largest supplier, in this round of retaliation. Champagne said the response was "proportional" and targeted at the products best suited to pressure Washington.
An escalation that began in 2025
The trade dispute between the two countries gained momentum in early 2025, when Trump imposed 25% tariffs on most Canadian imports and 10% on energy products, citing the need to combat drug trafficking and illegal immigration. Canada responded with an initial round of 25% tariffs on about C$30 billion in American goods, later expanded to cover another US$20.6 billion. On August 22, new 50% American tariffs on about US$20 billion in Canadian products, including wine, honey, clothing and sports equipment, took effect after trade talks between the countries collapsed. The following day, Trump announced additional 50% tariffs on cars, trucks, auto parts and steel imported from Canada, set to take effect in January 2027.
To impose the new tariffs, Trump invoked Section 338 of the Tariff Act of 1930, a provision never before used by a US president for this purpose, according to a report by The New York Times cited by G1. This unprecedented use of the law raises questions about how courts will interpret it and could trigger new legal battles. Economist Trevor Tombe of the University of Calgary, cited by G1, estimated that maintaining the 50% American tariffs could put more than 87,000 jobs at risk in Canada. The escalation is also raising alarm among other US trading partners, including Brazil, which is separately negotiating with Washington to reduce tariffs on Brazilian exports.