Canada Imposes $27.6 Billion Counter-Tariffs on United States

The Government of Canada will impose $27.6 billion in counter-tariffs on U.S. imports starting September 8, following the collapse of trade negotiations with the United States. This dollar-for-dollar response targets over 700 items, including steel, aluminum, dairy, electronics, and clothing, with rates ranging from 15% to 50%.

The escalation follows August 22, when U.S. President Donald Trump imposed 50% tariffs on approximately $28 billion of Canadian goods under the U.S. Tariff Act of 1930. Prime Minister Mark Carney rejected a final U.S. proposal, stating it asked too much and offered too little, specifically citing threats to Canadian sovereignty, French language protections, and the sustainability of heavy-duty truck production.

In response to the Canadian retaliation, President Trump threatened additional 50% tariffs on Canadian autos, steel, and aluminum in January 2027, while the White House claimed Canada has been ripping off the United States for decades. To mitigate the domestic economic impact, Ottawa pledged a $7.5 billion stimulus package to support affected workers and businesses through expanded employment insurance and liquidity streams via the Business Development Bank of Canada.

Canadian officials described the counter-tariffs as a strategic effort to apply political pressure on the U.S. administration by targeting products from specific American states. Meanwhile, the U.S. Trade Representative's office maintained that the rejected deal offered Canada the best treatment of any major exporter.