Roughly 700 American products will be caught up in Canada’s retaliation against Washington’s latest tariff wave, as Ottawa escalates a trade fight that intensified after negotiations between the two countries collapsed late last week.
Finance Minister François-Philippe Champagne said the federal government will hit $27.6 billion worth of U.S. imports with dollar-for-dollar, rate-for-rate counter-tariffs beginning September 8. Rates are set at 15%, 25% and 50%, with individual product rates based on matching the U.S. rate applied to the same Canadian goods.
The 50% tariffs U.S. President Donald Trump imposed on $27.6 billion of Canadian goods, after the two sides failed to reach a last-minute deal on Friday, are what the countermeasures mirror. Under Section 338 of the Tariff Act of 1930, the Trump administration is applying its tariffs, citing what it calls “discriminatory” Canadian trade policies, including a provincial ban on U.S. alcohol.
Among the goods drawing the heaviest 50% duties are perfumes and makeup, smartphones, milk products, tableware and kitchenware, plywood, paper products, honey, cutlery, and certain lumber and dairy products. Steel and aluminum tariffs are climbing from 25% to 50%, as are levies on furniture and clothing. Seafood, large kitchen appliances, cheese and curd, carpets and textiles fall in the 25% tier, while air conditioning machines sit in the lighter 15% bracket.
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Officials said the list avoids energy related items and was built around protecting domestic market share rather than raising revenue.
The government also announced a $7.5 billion package to support affected workers and businesses, on top of nearly $25 billion rolled out over the past 18 months. It includes temporary employment insurance changes, $2 billion for a new Canada Strong Diversification Fund, and expanded lending through the Business Development Bank of Canada.
Prime Minister Mark Carney called Washington’s latest offer a “bad deal” that Canada could not accept.
