Canada has formally imposed retaliatory tariffs on $27.6 billion worth of American goods, escalating the deepening trade rift between Ottawa and Washington.
The new duties range from 15% to 50% across hundreds of U.S. products, targeting dairy, agricultural equipment, paper, household appliances and electronics.
Canadian tariffs on U.S. steel, aluminum and iron products have doubled to 50%, with furniture, motorbikes, clothing and some beauty products also hit with the highest rate.
Canada described the measures as a “dollar for dollar” response to U.S. levies imposed on Canadian goods under Section 338 tariffs, which have placed significant pressure on key Canadian industries.
The Canadian Department of Finance said the tariffs would protect Canadian workers, producers and manufacturers by allowing them to better compete with U.S. products sold in the domestic market.
Existing Canadian counter-tariffs, including a 25% levy on the politically sensitive autos sector, remain firmly in place alongside the newly introduced measures.
Trade talks between the two longstanding allies collapsed at the end of August, with officials on both sides publicly blaming each other for the failure to reach any meaningful compromise.
U.S. President Donald Trump further inflamed tensions on Monday, calling for a boycott of Canadian airplane manufacturer Bombardier and posting on Truth Social: “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!”
The U.S. exported $333.6 billion worth of goods to Canada and imported $381.9 billion from its northern neighbour, with both nations sharing trade across energy, vehicles, heavy machinery, aircraft and pharmaceuticals.
Economists have warned that while the newly targeted goods represent a relatively small portion of overall bilateral trade, small- and medium-sized businesses operating in the most affected sectors face a severe financial blow.
Ottawa moved last month to cushion the impact, announcing a $7.5 billion support package for businesses and workers, extending an existing $25 billion already provided in response to the U.S. global tariff offensive that began in April 2025.
The standoff shows little sign of resolution, with senior officials on both sides continuing to trade barbs publicly and no fresh round of negotiations currently scheduled.