OTTAWA: Canada announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of United States goods on Tuesday, matching new US duties and unveiling additional measures to support businesses and workers caught in the escalating trade war.
The Canadian counter-tariffs will take effect on September 8 and cover about 700 US products, with duties of 15%, 25% and 50%, according to a government statement.
The move marks a new low in relations between the two neighbours after months of increasingly bitter trade tensions.
❗Canada FIRES BACK at US with +$27B in TARIFFS on American Goods
‘Effective Sept 8th, Canada will impose counter-tariffs of up to 15%, 25% or 50% on $27.6 billion of imports from the US’ — Canadian Fin Min Champagne pic.twitter.com/auY8mkM1oC
— RT Intl (@RT_on_X) August 25, 2026
Canada tariffs target key US goods
The 50% duties will apply to products including steel, aluminium, furniture and clothing, while 25% tariffs will cover cheese, appliances and some seafood, a Canadian government official said.
Electronics and tools will face 15% tariffs.
The measures are designed to minimise the impact on Canadian consumers and businesses while still putting pressure on US exporters, the official said.
Canada’s Finance Minister François-Philippe Champagne said the counter-tariffs would be imposed “dollar-for-dollar” and “rate for rate” in response to US measures.
“When the US asked too much and offered too little, we chose to stand up for Canadians,” Champagne said, referring to trade talks that collapsed on Friday.
Support for businesses and workers
Ottawa also announced a multi-billion-dollar package aimed at cushioning the impact of the tariffs on Canadian companies and workers.
A government statement put the value of new and enhanced measures at C$7.5 billion. The package includes support for small and medium-sized businesses, financing to help companies manage cash flows and assistance for workers at risk from the new tariffs.
Champagne said the measures would protect “workers, farmers, families and businesses” while helping Canada build a more resilient and diversified economy.
Jobs and Families Minister Patty Hajdu said Canada had faced “unjust” tariffs before and would now “double down” on measures to protect jobs and businesses.
She said the government would invest an additional C$3.5 billion to provide greater stability for individuals and the economy. Worker retention and retraining programmes would also be enhanced to help employees keep their jobs while businesses face difficulties.
Industry Minister Mélanie Joly said the government would remain “flexible and adaptable” to the needs of Canadian businesses.
She also urged Canadians to support domestic companies, saying buying Canadian products would help protect local jobs.
US-Canada trade war
The latest measures follow new US tariffs on Canadian imports that took effect on Saturday after trade talks between Washington and Ottawa broke down.
US President Donald Trump had imposed 50% tariffs on about $20 billion worth of Canadian goods. On Monday, he said tariffs on Canadian cars and automotive parts would rise from January 1.
Trump also threatened on Tuesday to rename Lake Ontario “Lake America”.
The escalating dispute comes at a difficult time for the US economy, with the Trump administration facing persistent inflation and growing voter dissatisfaction over its handling of economic issues ahead of crucial midterm elections.
