Canada Imposes Retaliatory Tariffs on US Goods

Canada imposed retaliatory tariffs on nearly $20 billion worth of U.S. goods Tuesday, escalating a trade war between the neighboring economies after negotiations collapsed with no deal in sight.

The counter-tariffs, which took effect just after midnight, range from 15% to 50% and cover more than 700 American products, including steel, household appliances, agricultural equipment, dairy, furniture, textiles and consumer goods. Canadian officials have said the measures are intended to match U.S. tariffs “dollar for dollar.”

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Prime Minister Mark Carney told reporters in late August, according to Al Jazeera.

The measures follow U.S. tariffs on Canadian goods including cars, trucks, steel, aluminum, lumber, dairy, alcohol, hockey sticks and perfume. CBS News reported that the latest Canadian tariffs include 50% duties on American milk, perfume, video game consoles, golf clubs, fishing rods, steel, aluminum, jackets and T-shirts; 25% tariffs on cheese, carpets and some household appliances such as stoves and air conditioners; and 15% tariffs on forklifts and industrial molds.

Canada initially planned to include some American seafood, including fresh fish and lobster, but removed dozens of seafood items after pushback from the fishing industry. The BBC reported that the lobster industries in both countries are closely linked, with American-caught lobster often sent north to Canada for processing before being shipped back to the United States for sale.

Both governments say they want a deal, but talks have not resumed since breaking down in late August. Carney said last week that Canada is seeking an agreement that is “durable” and in the best interests of both countries. “We’re ready to sit down and strike that deal when the Americans are ready,” he said.

U.S. Trade Representative Jamieson Greer said Thursday that Canada must make the next move. “We offered them the best deal, they looked at it square in the face and turned around,” Greer told Fox News, adding that communication with Canadian officials has been sparse since talks collapsed. In a separate interview with CBC, he warned against retaliation and suggested the United States could respond by banning imports of some Canadian products.

President Donald Trump has also sharpened his attacks on Canada. On Monday, he threatened to halt U.S. business with Montreal-based aircraft maker Bombardier unless the company moved manufacturing to the United States. The BBC reported that Bombardier contributed more than C$7 billion to Canada’s annual GDP in 2024, citing a PwC report commissioned by the company.

Trump previously wrote on social media that Canada “wants the benefits of being a State, without being one!!!” CBS News reported that he also wrote last month, “I don’t want Canadian cars, I don’t want Canadian parts, I don’t want Canadian anything. They’ve been ripping us off for decades, and it’s going to stop.”

The U.S. and Canada have one of the world’s largest bilateral trading relationships, valued at nearly $900 billion in 2025, according to the BBC. CBS News, citing U.S. government figures, reported that goods crossing the border totaled more than $700 billion last year.

Businesses on both sides are preparing for higher costs. Economists warn Canadian consumers could see price increases on clothing, food and furniture, while CBS News reported that manufacturers in Midwestern states such as Michigan and Indiana, as well as dairy producers in Wisconsin and Vermont, could be hit hard. Al Jazeera cited a Kiel Institute for the World Economy report finding that U.S. importers and consumers absorb 96% of the tariff burden.

The Canadian government has said it will launch a $5.42 billion support package for affected small and medium-sized businesses and workers. The Canadian Chamber of Commerce urged Ottawa to avoid a cycle of escalation. “Businesses understand retaliation but don’t want to see endless escalation,” CEO Candace Laing said in a statement to the BBC, adding that businesses “are preparing for this trade dispute to last.”