Canada has introduced counter-tariffs on US imports starting September 8, 2026. These duties cover American goods worth between $20 billion and $28 billion, with rates ranging from 15% to 50%. The measures target specific sectors, including electronics, dairy, and steel.
The decision follows the collapse of trade negotiations on August 21, after which the US imposed tariffs of up to 50% on approximately $20 billion of Canadian goods. Prime Minister Mark Carney, who took office in March 2025, stated that these retaliatory measures are necessary to protect Canadian workers and companies.
The Canadian government has also expanded or launched relief programs for domestic businesses affected by the trade war. Economists estimate that the short-term impact on Canada's GDP will be between 0.2% and 0.8%, provided the tariffs remain in place for a limited time.
Ottawa is now actively seeking to diversify its trading partners to reduce reliance on the US, which currently accounts for roughly three-quarters of Canada's exports. However, companies relying on US inputs, such as Ontario steel manufacturers, face raw material cost increases of 25% to 50%.