Canada's retaliatory tariffs on $27.6 billion of U.S. goods took effect Tuesday, with rates running as high as 50% on steel, aluminum, furniture and clothing. The move follows the collapse of trade talks last month, and both governments continue to blame each other for the impasse.
Canada hits back with tariffs up to 50%
Canada's retaliatory tariffs on a swathe of U.S. goods took effect on Tuesday after trade talks between Washington and Ottawa collapsed last month. The duties span hundreds of U.S. products worth a total $27.6 billion, including dairy, agricultural equipment, paper, household appliances and electronics.
The rates range from 15% to 50%. Canadian tariffs on U.S. steel, aluminum and iron products doubled to 50%, and furniture, motorbikes, clothing and some beauty products were also hit with the top rate.
Canada called the move a "dollar for dollar" response to U.S. levies on its own goods under Section 338 tariffs. Its Department of Finance said the measures would protect Canadian workers, producers and manufacturers by letting them better compete with U.S. products sold domestically. Existing Canadian counter-tariffs, including 25% on the autos sector, remain in place.
Talks collapsed, blame continues
Trade talks between the two countries 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 bridge. On Monday, President Trump called for a boycott of Canadian planemaker Bombardier. According to CNBC, he posted 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 two countries share trade across many of the same sectors, including energy, vehicles, heavy machinery, aircraft, pharmaceuticals, gems and jewelry, furniture, clothing and food and drink.
Economists say the impacted goods are a relatively small portion of overall trade, but small- and medium-sized businesses and those in the hardest-hit 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 that began in April 2025.
Source: CNBC
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