Canada has announced retaliatory tariffs as high as 50% on a range of US goods, including steel, furniture, fresh tuna, and cotton T-shirts. These counter-tariffs are a direct response to the latest wave of levies imposed by the US administration under President Donald Trump on Canadian imports last weekend.

The Canadian tariffs will affect nearly C$28 billion (approximately $20 billion; £15 billion) worth of American products and are designed to match the Canadian goods targeted by the US. These levies are set to take effect on Tuesday, 8 September 2026.

Finance Minister François-Philippe Champagne stated that Canada's retaliation follows the imposition of 50% tariffs by the Trump administration on a range of Canadian goods after trade talks collapsed on Friday, 21 August 2026. He warned, "Those tariffs will have real consequences for Canadian workers, businesses and communities across our nation."

The escalation comes after failed US-Canada trade negotiations, with both sides accusing each other of unreasonable last-minute demands. On Monday, 24 August, President Trump threatened to increase US tariffs on Canadian automobiles to 50% starting 1 January 2027.

Ontario Premier Doug Ford, who previously called Trump a "loser" at a news conference, acknowledged in a CNN interview that "things got a little heated" during the dispute. Meanwhile, President Claudia Sheinbaum dispatched her economy secretary, Marcelo Ebrard, to Washington for emergency talks following the breakdown in negotiations.

This latest development marks a significant intensification in the ongoing trade tensions between the US and Canada.

Sources