Canada Imposes Counter-Tariffs on Over 700 U.S. Goods Valued at 27.6 Billion Canadian Dollars
Canada announced retaliatory tariffs on over 700 U.S. goods valued at 27.6 billion Canadian dollars along with a 7.5-billion-Canadian-dollar assistance package for businesses and workers that affects the Canada economy. [1] The counter-tariffs match the value of Canadian products hit by the latest 50-percent U.S. tariffs and are scheduled to take effect on Sept. 8. [1] [2]
Canada Announces Retaliatory Tariffs
The Canadian federal government on Tuesday announced retaliatory tariffs on over 700 U.S. goods valued at 27.6 billion Canadian dollars, or about 20 billion U.S. dollars, alongside the 7.5-billion-Canadian-dollar assistance package for domestic businesses and workers. [1] Canadian officials said the countermeasures match the total value of Canadian products targeted by the latest 50-percent U.S. tariffs, achieving a dollar-for-dollar, rate-for-rate response. [1] The counter-tariffs are scheduled to take effect officially on Sept. 8. [1] [2] Ottawa's retaliation will take effect on Sept. 8, a timeframe earlier outlined by Prime Minister Mark Carney after U.S. President Donald Trump's 50 percent duties came into place on Saturday. [2]
Targeted Sectors and Tariff Rates
According to a list released by the Finance Ministry, the new targeted counter-tariffs are concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, with tariff rates set at three tiers of 15 percent, 25 percent and 50 percent. [1] The list includes frozen and fresh fish, consumer goods like dishwashers and washing machines, as well as industrial products including railway construction materials. [2] In certain sectors such as steel and aluminum, existing counter-tariffs will increase from 25 percent to 50 percent to match U.S. rates. [1] Other existing counter-tariffs, including those against U.S. autos, will also continue to apply. [1] A 25-percent tariff will be levied on dairy products such as cheese, fish, seafood, and certain steel and aluminum derivatives. [1] Goods facing 25 percent tariffs include appliances, dairy products like cheese, as well as certain steel and aluminum derivative products. [2] A small category will see a 15 percent duty, including electric equipment and tools. [2]
7.5-Billion-Dollar Assistance Package
In addition to the tariffs, the federal government announced a 7.5-billion-Canadian-dollar relief package, primarily targeting small and medium-sized enterprises. [1] Ottawa promised to help companies avoid layoffs, enable more workers to upgrade skills, and increase flexibility for accessing employment insurance. [1] Canada's government also announced a C$7.5 billion aid package for firms and workers. [2]
Government Statements on Protection and Unity
Canadian Finance Minister Francois-Philippe Champagne said the reciprocal tariffs as well as the multi-billion-dollar support package will protect workers, farmers, families and businesses. [1] Finance Minister Francois-Philippe Champagne said the retaliatory tariffs of 15 percent, 25 percent or 50 percent match U.S. levels. [2] Champagne added that this is an unprecedented challenge imposed on Canada but Canada will meet the moment and that what Canadians can see is that the country stands united. [2] Industry Minister Melanie Joly echoed Champagne's call for Canadians to support local businesses, vowing to work with new allies and trading partners. [2]
Context of Escalating Trade Tensions
Trump's latest tariffs hit about US$20 billion in Canadian goods, or 5.5 percent of its exports to the United States, after trade negotiations collapsed at the eleventh hour. [2] These form about 7.3 percent of Canada's imports from the United States at 2024 levels. [2] Already on Monday, Trump pledged to double tariffs on Canadian autos starting in 2027, up to 50 percent from the current 25 percent for non-U.S. content. [2] Ontario Premier Doug Ford criticised Trump's threat. [2] The fresh U.S. tariffs do not exempt products under the US-Mexico-Canada free trade agreement. [2] They raise the U.S. effective tariff rate on Canadian exports to 6.9 percent from 5.1 percent. [2]
Broader Trade Relationship
The United States is Canada's biggest trading partner. [2] Canadian exports to its neighbour represent 70 percent of its overall total. [2] Polling released Sunday by the Angus Reid Institute showed Canadians broadly support the move to walk away from talks. [2]
