Canada to Implement Tariffs on Over 700 US Products in Trade Retaliation
Canada is set to impose counter-tariffs on over 700 US-made products in retaliation for new import taxes introduced by the United States. According to Bloomberg, these tariffs will reach as high as 50% on goods such as steel, aluminum, furniture, golf clubs, milk, and apparel, with the measures scheduled to take effect on September 8.
The targeted products accounted for approximately C$27.6 billion (around $19.9 billion) of US imports in 2024. Prime Minister Mark Carney's government indicated that the tariffs are aimed at industries adversely affected by US protectionist policies. Key items on the list include:
- Steel and aluminum products
- Fish and aquatic goods
- Dairy products, including milk, cream, and whey, facing a 50% levy
- Cheese and curd, taxed at 25%
- Plywood, paper, and other manufactured items
This escalation in trade tensions follows a breakdown in negotiations between Washington and Ottawa, which unraveled in late August. The US had previously imposed a 50% duty on approximately $20 billion worth of Canadian goods, prompting Canada’s retaliatory measures.
Updated 23:00 UTC
New Developments in US-Canada Trade Relations
- The United States imposed a 50% tariff on Canadian cosmetics and other goods on August 22, 2026, following the collapse of bilateral trade negotiations.
- This tariff impacts approximately $20 billion worth of Canadian exports annually, accounting for about 5% of total US imports from Canada.
- The tariffs were enacted under Section 338 of the Tariff Act of 1930, a provision that has not been significantly used in decades.
- Canada retaliated with its own tariffs of up to 50% on around $20 billion worth of US imports, with some tariffs taking effect on September 8, 2026.
- The North American beauty supply chain is complex, with many products crossing the US-Canada border multiple times before reaching consumers.
- Smaller Canadian brands, particularly those in Quebec's cosmetics sector, face significant challenges due to the tariffs, as they may not have the resources to relocate manufacturing.
- The situation poses a potential stress test for the USMCA agreement, which was intended to provide stability for North American businesses.
FAQ
What products will Canada impose tariffs on?
Canada will impose tariffs on over 700 US-made products, including steel, aluminum, furniture, golf clubs, milk, and apparel.
When will the tariffs take effect?
The tariffs are scheduled to take effect on September 8.
What is the maximum tariff rate that Canada will apply?
The tariffs can reach as high as 50% on certain goods.
Why is Canada implementing these tariffs?
The tariffs are a retaliation against new import taxes introduced by the United States and are aimed at protecting Canadian industries adversely affected by US protectionist policies.
How much did the targeted US imports account for in 2024?
The targeted products accounted for approximately C$27.6 billion (around $19.9 billion) of US imports in 2024.
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