Canada Announces ‘Dollar-for-Dollar’ Retaliatory Tariffs on US as High as 50%
BBC News
Image source: Reuters
Image caption: Canada described its counter-tariffs on the US as "proportionate" and "strategic".
By Nadine Yousif, Senior Canada Reporter
Published 25 August 2026
Canada has announced counter-tariffs as high as 50% on a range of US goods in retaliation to the latest wave of levies on Canadian imports imposed by President Donald Trump last weekend.
The Canadian tariffs will apply to nearly C$28bn ($20bn; £15bn) worth of American products, ranging from steel to furniture, fresh tuna, and cotton T-shirts, officials announced on Tuesday.
The list of targeted products is designed to match Canadian goods hit by the US. The Canadian levies are set to come into effect on 8 September.
This is the latest escalation after US-Canada trade talks collapsed late last week, with each side accusing the other of making last-minute demands that were unreasonable.
Finance Minister François-Philippe Champagne said that Canada’s retaliation is in response to 50% tariffs imposed by the Trump administration on a range of Canadian goods after trade talks fell apart on Friday.
"Those tariffs will have real consequences for Canadian workers, businesses, and communities across our nation. Canada must respond."
Champagne characterized Canada’s retaliation as "proportionate" and "strategic."
He added that Canada will also offer businesses and workers impacted by US tariffs an additional C$7.5bn for support programs designed to minimize job losses and keep companies afloat.
Placing taxes on trade between what are historically two of the world’s closest trading partners will undoubtedly lead to pain on both sides of the border.
Supply chains which have been developed over decades are set to see increased trading costs due to the latest tariff announcements made from both the US and Canada, ultimately hitting businesses of all sizes and consumers through potentially higher prices.
Polls suggest the majority of Canadians support their government in holding firm against the US. However, some questions remain on exactly why trade talks fell apart, with the Conservative opposition asking that the full text of the draft deal with the US be released.
Businesses have also expressed concerns about the impact of a prolonged trade war with Canada’s largest trading partner.
The White House released a statement after Canada announced its counter-tariffs, saying that the US was prepared to offer Canada "the most preferential market access of any country on Earth" in recent trade talks.
"Instead of partnership, Canada chose unreasonable demands, walk-backs, and flat-out rejection."
In a series of Tuesday posts on Truth Social, Trump also accused Canada of "ripping off" the US for decades and of charging American farmers steep tariffs.
"I deal with many countries, and Canada is easily the most difficult and unreasonable. They feel entitled, but they are not a State, and will be entitled no longer!"
He suggested that he will change the name of Lake Ontario, one of the Great Lakes on the US-Canada border, to Lake America, writing: "We don’t expect to doing much business with Ontario any longer."
Trump threatened to impose even higher tariffs on Canadian products if the situation is not resolved.
