Canada retaliatory tariffs on U.S. goods set for Sept. 8
Canada plans tariffs of up to 50% on about $20 billion in U.S. goods after trade talks collapsed and new U.S. duties hit Canadian products.
By James Whitfield · Staff Writer
3 min read
Canada retaliatory tariffs on U.S. goods covering about $20 billion in annual imports are scheduled to begin Sept. 8, after the Trump administration imposed 50% tariffs on Canadian goods following the collapse of trade talks. Canada says the measures will match U.S. duties dollar for dollar and rate for rate, placing further pressure on a closely connected trading relationship.
Finance Minister François-Philippe Champagne said the announced countertariffs will apply rates of 15%, 25% and 50% across more than 700 U.S. products, according to NPR and Associated Press reporting published by U.S. News. The existing Canadian countertariffs on U.S. automobiles will stay in place.
Which U.S. goods will face Canada’s retaliatory tariffs?
The Canadian plan includes industrial inputs and consumer products. The reported product list includes steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, fish and seafood, furniture and clothing.
50%: Some steel and aluminum products, along with furniture and clothing.
25%: Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives.
15%, 25% and 50%: The full schedule uses all three rates across more than 700 products, including pulp and paper and electronics.
Canada’s Finance Ministry has published a product list, but officials described the policy as announced countertariffs that take effect Sept. 8 rather than duties already being collected.
What prompted Canada’s response?
The Trump administration imposed 50% tariffs on Canadian goods after negotiations broke down, NPR and the AP reported. Prime Minister Mark Carney suspended the talks on Friday, saying last-minute changes to the U.S. proposal were unfair, uneconomic and cast doubt on whether an agreement could be relied upon.
Champagne said Canada’s aim is to protect Canadian companies affected by U.S. tariffs and help them compete with American products in Canada. Canadian officials also said they intended to reduce U.S. imports, rather than use the policy chiefly to raise revenue.
What could the dispute mean for businesses and consumers?
Canadian officials acknowledged that the countertariffs could lift costs for some businesses and consumers, while maintaining that they expect the overall economic effect to be moderate, according to the AP report. The evidence does not establish specific price or employment effects.
The United States and Canada have integrated supply chains in autos, energy, agriculture and manufacturing. That integration means a prolonged dispute could be costly for businesses and workers on both sides of the border, while leaving consumers and companies uncertain about possible price changes, the AP reported.
Canada also announced C$7.5 billion, or about US$5.4 billion, in support for workers and businesses affected by the trade fight. The aid package accompanies the countertariffs as Ottawa prepares for the measures to begin next month.
This story draws on original reporting from NPR.