Canada announces wide-ranging tariffs on American imports

Canada announces wide-ranging tariffs on American imports

Canada will impose tariffs on more than 700 goods originating in the US from 8 September, with most rates set at 25% or 50%. The measures will cover C$27.6bn in imports and include products such as cosmetics, dairy, wood products, outdoor equipment, appliances and agricultural machinery.

Finance Minister François-Philippe Champagne and Industry Minister Mélanie Joly described the measures as a focused response to US tariffs imposed after trade talks collapsed. The Canadian government says its action is intended to match the US levies roughly dollar for dollar.

Why Canada is responding

The White House said it was using section 338 of the Tariff Act of 1930 against what it called discriminatory Canadian trade policies, including provincial bans on US alcohol. Canada introduced those bans in protest against tariffs imposed on Canadian goods last year.

Prime Minister Mark Carney had previously pledged a dollar-for-dollar response after the White House singled out about 5% of Canadian exports to the US. The Canadian measures target sectors including steel, pulp and paper, dairy and agricultural equipment.

Related coverage: Mark Carney sets September 8 start for Canada’s US tariff response.

Key points

  • A smaller group of products, including air-conditioning units and tool parts, will face a 15% tariff.
  • The list includes more than 700 items, from hockey sticks and ornamental fish to toilet paper and smoked lobster.
  • The tariffs apply only to goods originating in the US.
  • Canada announced more than C$7bn in support for businesses affected by the latest tariffs, in addition to more than C$20bn announced over the previous 18 months.

Businesses and consumers urged to buy Canadian

Joly called on businesses and consumers to buy Canadian goods as part of a broader resistance movement in the trade dispute. Champagne said Canada remained united in defending its economic interests.

The new measures deepen a trade confrontation between the two countries that both governments say could impose costs running into billions. Donald Trump has also criticised Ontario Premier Doug Ford during the dispute and warned of worse consequences for Canada if its leaders did not fall in line.

More context: Canada to match US tariffs after trade talks miss Friday deadline.

What happens next

The Canadian tariffs are scheduled to take effect on 8 September and will apply only to qualifying goods originating in the US.

Also read: Trump says Canadian car, steel tariffs will double in 2027.

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