Canada’s retaliatory tariffs on hundreds of American products took effect at 12:01 a.m. on Tuesday, September 8, deepening a trade dispute between the two neighbors that intensified after negotiations collapsed in August.
The new duties cover U.S. goods worth CA$27.6 billion, or roughly US$20 billion, at rates of 15%, 25% or 50% depending on the product, according to CNBC and CBS News. Ottawa has framed the measures as a “dollar for dollar” response to the 50% tariffs Washington placed on about $20 billion worth of Canadian goods, including wine and hockey sticks, on August 22.
What the tariffs cover
The Canada tariffs target dairy, agricultural equipment, pulp and paper, household appliances and electronics, among other categories. Canadian tariffs on U.S. steel, aluminum and iron products doubled to 50%, CNBC reported, while furniture, motorcycles, clothing and some beauty products were also hit at the top rate. CBS News noted that the measures reach everyday purchases such as seafood, cheese, cosmetics and toilet paper.
The Toronto law firm Blakes said the tariffs apply across more than 600 product classifications and mirror the sectors covered by the U.S. action. Canada’s Department of Finance told stakeholders the new duties are not meant to be stacked on top of existing ones, the firm said. Earlier Canadian counter-tariffs remain in force, including a 25% duty on U.S. autos.
When the measures were announced on August 25, Finance Minister François-Philippe Champagne said Canada would match Washington product for product. “Today, I’m announcing Canada will match the U.S. tariffs dollar for dollar, up to 50% on $27.6 billion of imports from the United States of America,” Champagne said, according to CBS News. “For each product, our tariff would match the U.S. tariff on the same type of good.”
Champagne also criticized the American position in the failed talks. “Ultimately, the terms proposed by the U.S. were uneconomic, unfair and ultimately, unacceptable,” he said. “We stood up for our workers. We stood up for our businesses. We stood up for Canada.”
How the dispute escalated
The U.S. tariffs were imposed under Section 338 of the Tariff Act of 1930, a rarely used Depression-era provision that lets the president impose duties on imports from a trading partner found to discriminate against American commerce. They took effect hours after the two governments failed to finalize a deal that would have prevented them. Each side has accused the other of making unworkable last-minute changes to an agreement that was nearly complete, CNBC reported.
Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during the talks showed that Americans wanted to “destroy our major industries,” CBS News reported.
Tensions rose again on Monday when President Donald Trump called for a boycott of the Canadian aircraft maker Bombardier. “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!” Trump wrote on Truth Social. Bombardier said in a statement to CNBC that it employs workers in more than 20 states and relies on many U.S.-made components.
The post drew pushback from Republicans in Kansas, where Bombardier has a large operation in Wichita. Sen. Jerry Moran said the site “supports a local workforce of more than a thousand employees,” and Sen. Roger Marshall wrote on X that he would “fight to keep Bombardier’s over 1,200 Kansas jobs.”
Support for Canadian businesses
Alongside the tariffs, Ottawa announced a CA$7.5 billion package of support for affected workers and companies, including loans and income support. That builds on CA$25 billion in earlier aid provided after the U.S. tariff campaign began in April 2025. Industry Minister Mélanie Joly urged Canadians to buy domestic products, CBS News reported.
The goods covered are a small slice of total trade between the two countries. The United States exported $333.6 billion in goods to Canada in 2025 and imported $381.9 billion, according to the Office of the U.S. Trade Representative, as cited by CNBC. Economists say small and medium-sized businesses in the hardest-hit sectors are likely to feel the greatest strain.
Augustine Lo, a partner at the law firm Dorsey and Whitney, told CBS News that the tariff lists “include some goods that could have broad downstream effects on industries, trades, professions and consumers.”
