Canada announced retaliatory tariffs on more than 700 U.S. products, with rates of 15%, 25%, and 50%, effective September 8, matching U.S. tariff levels on steel, aluminum, and other goods. The move follows the collapse of trade negotiations and escalates a growing trade conflict between the two nations.
Canadian officials stated the tariffs aim to protect domestic industries rather than generate revenue, targeting steel and aluminum imports that have already declined 30% under prior measures. A $7.5 billion support package for affected workers and businesses was also announced, bringing total government aid since early 2025 to over $30 billion Canadian dollars.
Officials acknowledged higher costs for some businesses and consumers but expect overall economic effects to remain moderate. Supply chains across autos, energy, and manufacturing remain deeply integrated, leaving both countries vulnerable to prolonged disruption.
Prime Minister Mark Carney rejected U.S. demands on cultural and language protections, calling the proposed deal harmful to major Canadian industries. He indicated Canada may shift from matching tariffs dollar-for-dollar to more targeted retaliation.