Canada Implements Counter Tariffs Amid Trade War with U.S.

Tue Sep 08 2026 08:45:50 GMT+0000 (Coordinated Universal Time)

Canada's new tariffs on $28bn of U.S. goods are up to 50%, escalating the trade dispute with Washington and threatening to raise consumer prices.

On Tuesday, Canada rolled out counter‑tariffs targeting nearly C$28 billion of American exports, covering steel, furniture, clothing and several other categories. The move follows a series of U.S. tariffs and the collapse of trade talks in late August. Prime Minister Mark Carney calls for a lasting deal, while U.S. trade representative Jamieson Greer hints that the U.S. might respond in kind. Polls show most Canadians back the retaliatory measures, but economists warn of price hikes for everyday goods.

Canada Implements Counter Tariffs Amid Trade War with U.S.

On Tuesday, Canada rolled out counter‑tariffs targeting almost C$28 billion of American exports—steel, furniture, cotton T‑shirts, fresh fish and lobster among others— with rates that can reach 50 %. The new duties were signed into law without any sign of an agreement and come in the wake of U.S. trade tensions that have plagued the North‑American trade bloc since late August.

Prime Minister Mark Carney said Canada is still searching for a durable deal that protects both countries, adding: “We’re ready to sit down and strike that deal when the Americans are ready.” U.S. trade rep Jamieson Greer countered that Canada must act first, noting that “the ball is in Canada’s court.” Greer has warned that Washington might retaliate by banning Canadian imports, while President Donald Trump threatened to halt all Bombardier aircraft orders unless the firm moves production south.

The counter‑tariffs, described by Carney as “dollar‑for‑dollar,” are applied to hundreds of U.S. items as of midnight on Tuesday, adding to existing duties on Canadian steel, aluminium and lumber. The Canadian fisheries lobby influenced a roll‑back of several seafood duties—especially lobster—to avoid a double blow to the domestic fishing sector.

Polls show a majority of Canadians support imposing retaliatory tariffs, but industry leaders warn that the costs will spill over onto consumers. The Canadian Chamber of Commerce calls for a “surgical” approach and notes that the dispute could last, urging businesses to prepare for a prolonged conflict. Economists forecast price rises in everyday goods, while government data shows a recent rebound in GDP and job growth—though about 41,000 jobs fell in August amid the new U.S. tariffs.

For deeper insight into the economic impact, read What tariffs will really cost Canadians and Americans and see the trade war’s key metrics in The US‑Canada trade war in 5 charts.