Canada’s federal government in Ottawa has made good on its threat to impose retaliatory tariffs of up to 50% on a range of U.S. goods.
The retaliatory tariffs went into effect at midnight on Sept. 8 as relations between the U.S. and Canada continue to deteriorate.
The new Canadian duties range from 15% to 50% and cover hundreds of American products worth a combined $27.60 billion U.S.
Economic sectors targeted by Ottawa include dairy, agriculture, pulp and paper, household appliances, and electronic devices.
Canada’s new tariffs are highest on U.S. steel, aluminum and iron products at 50%, matching the American levies on Canada’s industrial metals.
Other U.S. products that now have 50% Canadian tariffs include furniture, clothing, and some beauty products.
Prime Minister Mark Carney has called the new tariffs a “dollar for dollar” response to U.S. levies on Canadian goods.
The new Canadian import duties also target politically sensitive U.S. border states that could be a factor in the U.S. Midterm elections this November, such as Maine, Michigan, and Wisconsin.
The tit-for-tat tariffs from Canada arrive after trade talks between the U.S. and Canada collapsed at the end of August.
U.S. President Donald Trump has threatened more trade actions against Canada, including taking aim at the currency exchange rate between the neighbouring countries.
Trump has also called for a boycott of Canadian airplane manufacturer Bombardier (TSE: BBD.B).
The U.S. exported $333.6 billion U.S. worth of goods to Canada, and imported $381.9 billion U.S. in 2025, according to government data.
Prime Minister Carney’s Liberal government has announced a new $7.5 billion support package for Canadian businesses and workers impacted by the retaliatory tariffs on U.S. imports.
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