Canada’s counter-tariffs on $27.6 billion worth of United States imports took effect at 12:01 a.m. Eastern time Tuesday, applying duties of 15, 25 and 50 per cent to more than 700 American products in the sharpest escalation yet of the trade dispute between Ottawa and Washington.
The measures were announced Aug. 25 by the Department of Finance and are built to match the American tariffs rate for rate, with the duty on each product on Canada’s list mirroring the U.S. rate charged on the corresponding Canadian export. They answer U.S. duties of up to 50 per cent imposed on Canadian goods under Section 338 of the U.S. Tariff Act of 1930 and under Section 232 national security provisions, after trade negotiations between the two countries collapsed last month.
Ottawa’s list targets steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper and electronics, according to the Department of Finance. The 50 per cent tier covers certain steel, aluminum and iron products along with certain furniture, clothing and apparel. Steel and aluminum goods that previously carried a 25 per cent Canadian counter-tariff move to 50 per cent, bringing Canada’s rate on those metals level with the American rate charged on Canadian shipments. The 25 per cent tier includes appliances, dairy products such as cheese, fish and seafood, and certain steel and aluminum derivative products.
The list reaches well beyond industrial inputs. Everyday consumer goods including specialty cheeses, seafood, clothing, cosmetics and paper products are among the items now carrying duties, some of them at the highest rate. A Winnipeg grocer told CBC News the counter-tariffs will hurt both businesses and consumers, and that American specialty cheeses are among the products likely to cost more as Canada matches the U.S. rates.
The counter-tariffs do not apply to U.S. goods that were already in transit to Canada when the measures came into force, the Department of Finance said. Existing Canadian counter-tariffs imposed earlier in the dispute remain in place alongside the new list.
Trade analysts have said the measures will fall hardest on small and medium-sized importers, which have less capacity than large firms to absorb the added cost, re-route supply chains or shift to suppliers outside the United States. The direct effect on individual consumers is expected to be more limited in the near term, since the affected goods represent a modest share of total two-way trade.
Ottawa has paired the countermeasures with money for the sectors in the line of fire. The federal government announced a $7.5 billion package of new and enhanced support for workers and businesses hit by U.S. tariffs on Aug. 25, the same day it released the counter-tariff list. It has provided more than $30 billion in tariff-related support since the beginning of 2025.
Prime Minister Mark Carney has signalled the dollar-for-dollar approach may not hold indefinitely. Carney has said Canada may need to move away from matching American tariffs rate for rate and toward more targeted retaliation aimed at protecting Canadian workers and businesses, a shift that would mark a change in strategy after months of mirrored escalation.
The two economies remain deeply integrated across autos, energy, agriculture and manufacturing, and a prolonged fight carries costs on both sides of the border. No new negotiations were underway as the deadline passed. Whether the measures stay in place depends on whether talks resume, and neither government has set a date for returning to the table.
