Canada will impose counter-tariffs ranging from 15% to 50% on about C$20 billion of US imports, effective September 8, following the collapse of bilateral trade talks and US duties of 50% imposed August 22 on roughly 5% of Canadian goods. Finance Minister François-Philippe Champagne said the measures are designed to match US rates dollar for dollar across more than 700 product lines.
Tariffs of 50% will apply to US steel, aluminum, furniture and clothing; 25% to appliances, dairy including cheese, certain fish and seafood, and some steel and aluminum derivatives; 15% to electronics and tools. Existing 25% counter-tariffs on US autos will remain in place. Industry Minister Mélanie Joly announced a C$7.5 billion support package, including grants and interest-free loans for affected workers and small businesses.
Canadian officials said the measures aim to protect domestic industry rather than raise revenue, noting US steel imports had already fallen 30% under the prior 25% duty. Prime Minister Mark Carney accused Washington of seeking to subordinate Canada and to destroy its major industries. Officials acknowledged higher costs for some businesses and consumers.
President Trump on August 24 said he would double tariffs to 50% on Canadian autos and auto parts and threatened further action; he also said the US was giving serious consideration to renaming Lake Ontario. The threatened auto rate increase is slated to take effect January 1.