Canada retaliatory tariffs on U.S. goods will start Sept. 8

Canada retaliatory tariffs on U.S. goods will take effect Sept. 8, placing new duties on about $20 billion of annual American imports. For Canadian consumers and businesses, the measures cover roughly 700 products, from steel and appliances to cheese and clothing, while Ottawa has acknowledged they may increase some costs.

Canada announced the response on Aug. 25 after U.S.-Canada trade negotiations collapsed and the Trump administration’s new 50% tariffs on about $20 billion of Canadian imports took effect over the preceding weekend, Reuters reported. Canadian officials described their response as dollar-for-dollar and rate-for-rate retaliation.

Which U.S. goods face Canada’s retaliatory tariffs?

The new Canadian rates are 15%, 25% and 50%. Reuters reported that the measures cover about 700 U.S. products, calculated using 2024 trade figures, representing nearly 4.5% of Canada’s imports from the United States.

• 50%: Some steel and aluminum products, furniture and clothing.

• 25%: Cheese, appliances and some seafood.

• 15%: Electronics and tools.

Reporting by Reuters and PBS NewsHour, citing the Associated Press, also identifies prepared foods, toiletries, plastics, lumber, wood pulp and paper, machinery, electrical equipment, motorcycles, rail engines and gaming equipment among the broader groups affected. The largest share of the new measures applies to steel and aluminum, according to PBS NewsHour. Some U.S. products that had faced a 25% Canadian tariff will move to a 50% rate.

A tariff is a tax imposed on imported goods. Canada Border Services Agency guidance says Canadian tariffs are collected as a surtax and are added to the value used to calculate GST or HST. That guidance describes the prior 2025 regime for U.S.-origin steel, aluminum and autos, however, rather than the broader Sept. 8 measures.

Why did Canada impose the new tariffs?

Canadian officials said the aim is to shield Canadian companies and reduce imports from the United States, rather than raise revenue, PBS NewsHour reported. Industry Minister Melanie Joly also said the policy was intended to apply political pressure in U.S. states ahead of the Nov. 3 midterm elections, according to Reuters.

The trade fight reaches into supply chains that connect the two countries across autos, energy, agriculture and manufacturing. Prime Minister Mark Carney said retaliation would raise costs and reduce choice for Canadians, CNBC reported. Canadian officials told PBS NewsHour they expected the overall economic effect to be moderate despite higher costs for some businesses and consumers.

What support is Canada offering businesses and workers?

Ottawa paired the tariffs with a C$7.5 billion support package for workers and businesses affected by the dispute. Reuters reported that the Business Development Bank of Canada will offer affected businesses interest-free loans of C$2.5 million to C$5 million, with repayments not required for 36 months.

The reporting does not provide a complete official product schedule or the final compliance rules for the new tariffs. Importers and consumers will need to look to subsequent Canadian government notices for product-level details.

This story draws on original reporting from CNBC.