On the Dash:
- Canada’s counter-tariffs on $20 billion in U.S. goods take effect September 8.
- Doubled steel and aluminum tariffs raise costs across the automaker supply chain.
- Vehicles are untouched for now, but a 2027 auto tariff threat still looms.
Canada announced retaliatory tariffs Tuesday on $27.6 billion Canadian ($20 billion) worth of U.S. goods, matching Washington’s latest duties dollar for dollar after trade talks between the two countries collapsed last week, according to a news release from the Department of Finance Canada.
The counter-tariffs take effect September 8 and apply rates of 15%, 25% and 50% to products drawn from the same categories the U.S. targeted under its Section 338 and Section 232 tariffs, with each Canadian rate matching the corresponding U.S. rate, the department said.
The move follows the U.S. decision to delay, then ultimately impose, a 50% tariff on $27.6 billion of Canadian goods effective August 22, after the U.S. and Canadian governments suspended negotiations toward a broader trade agreement, the release said.
Goods facing the 50% rate include steel and aluminum products previously subject to a 25% counter-tariff, along with furniture and clothing. Appliances, dairy products such as cheese, fish and seafood, and certain steel and aluminum derivative products fall under the 25% rate, according to the government. The department said its existing counter-tariffs on U.S. autos remain separate and stay in place, along with Canada’s tariff remission framework for exceptional relief requests. Auto tariffs had been a central sticking point in the collapsed negotiations, which fell apart over Canada’s push for relief on medium- and heavy-duty vehicles.
Canada also unveiled a $7.5 billion package of new and enhanced support measures for workers and businesses affected by the tariffs, building on nearly $25 billion in supports the government has provided since the U.S. tariffs began, according to the Finance Department. The package includes a $500 million liquidity stream through the Business Development Bank of Canada’s Pivot to Grow program, a $2 billion Canada Strong Diversification Fund for tariff-affected businesses, and $3.5 billion in rapid response supports for workers, including expanded employment insurance flexibilities and a new Worker Retention and Retraining Program.
Speaking to reporters in Ottawa on Tuesday, Industry Minister Mélanie Joly said the tariffs were also intended to apply political pressure on Washington ahead of the U.S. midterm elections in November.
“We’re also targeting products that will target states in the U.S. and so we’re being wise and strategic to put political pressure, and that’s why we think it’s the right thing to do right now,” Joly said.
The full list of roughly 700 affected products, along with details on the support package, is available on the Department of Finance Canada website.
