Canada's retaliatory tariffs worth $27.6 billion take effect as trade rift with U.S. deepens
Duties on U.S. steel and aluminum products have doubled to 50% as a war of words between Washington and Ottawa continues.
Canada's retaliatory tariffs on a swathe of U.S. goods took effect on Tuesday after trade talks collapsed last month, as relations between Washington and Ottawa continue to sour.
The duties range from 15% to 50% across $27.6 billion worth of U.S. products, including dairy, agricultural equipment, paper, household appliances and electronics. Canadian tariffs on U.S. steel, aluminum and iron products doubled to 50%, while furniture and clothing were also hit with the highest rate.
Canada called the move a "dollar for dollar" response to U.S. levies on its own goods, which have been targeted by Section 338 tariffs . Its Department of Finance said it would protect Canadian workers, producers and manufacturers by allowing them to better compete with U.S. products sold in the domestic market.
Existing Canadian counter-tariffs against the U.S., including 25% on the politically sensitive autos sector , remain in place.
Trade talks between the longstanding allies fell apart at the end of August , with officials on each side blaming one another for the failure to reach a deal and publicly disagreeing over which areas they could not find compromise .
U.S. President Donald Trump on Monday called for a boycott of Canadian airplane manufacturer Bombardier , posting on Truth Social: "NO MORE SELLING BOMBARDIER IN THE UNITED STATES!"
The U.S. exported $333.6 billion worth of goods to Canada, and imported $381.9 billion from its northern neighbor. The pair share trade in many of the same sectors, including energy, vehicles, heavy machinery, aircraft, pharmaceuticals, gems and jewelry, furniture, clothing and a host of foods and drinks.
Economists say that while the impacted goods are a relatively small portion of overall trade, small- to medium-sized businesses and those in the most-impacted sectors face a severe blow.
Ottawa announced a $7.5 billion support package for businesses and workers last month, extending an existing $25 billion it provided in response to the U.S. global tariff offensive, which began in April 2025.
