On September 8, 2026, Canada implemented counter-tariffs on US imports valued between $20 billion and $27.6 billion. This action follows the 50% duties imposed by Washington on August 22, 2026, which affected approximately $20 billion of Canadian exports, including automobiles, dairy, and wine.
The Canadian retaliatory measures cover more than 700 tariff lines. Duties range from 15% to 50% based on the product category. Specifically, steel and aluminum imports now face a 50% surcharge, while appliances and dairy products are subject to a 25% duty. Electronics are taxed at 15%.
To support affected businesses and workers, the Canadian government announced a CAD 7.5 billion aid package on August 25, 2026. However, the value of goods subject to these tariffs is estimated to be three to four times larger than the total support fund.
This escalation marks the most significant trade conflict between the two nations since 2025. Trade negotiations that continued through late August collapsed after both parties failed to reach an agreement due to last-minute demands.
