Canada will impose new counter tariffs on around 700 U.S. products from September 8, 2026, after trade talks with the United States failed to produce an agreement. The measures will target about C$27.6 billion ($20 billion) worth of U.S. imports, with tariffs ranging from 15% to 50%. Canada is also providing a C$7.5 billion support package for businesses and workers affected by the trade dispute, including interest-free loans of C$2.5 million to C$5 million through the Business Development Bank of Canada (BDC).
Canada will impose new counter tariffs on around 700 U.S. products from September 8, escalating the trade dispute between the two countries after recent negotiations failed to produce a new agreement.
The Canadian government said the measures will apply to about C$27.6 billion ($20 billion) worth of U.S. imports. The tariffs will range from 15% to 50%, depending on the product.
The latest action follows the United States' introduction of new 50% tariffs on about $20 billion of Canadian goods. Canada said its response would match the new U.S. measures dollar for dollar.
The new Canadian tariffs will affect a wide range of goods imported from the United States. Products facing the highest 50% tariff include steel, aluminum, furniture and clothing, while cheese, appliances and some seafood will face a 25% tariff.
A 15% tariff will apply to products including electronics and tools, according to a Canadian government official cited by Reuters. The tariff list also includes prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper products, carpets, machinery, electrical equipment, rail engines, motorcycles and gaming equipment.
Based on 2024 trade figures, the measures cover goods representing approximately 4.5% of Canada's imports from the United States.
Alongside the tariffs, Canada announced a C$7.5 billion package designed to support businesses and workers affected by the trade dispute.
The measures include assistance for small and medium-sized businesses, funding to help companies manage cash-flow pressures and support for workers whose employment could be affected by the new tariffs.
The Business Development Bank of Canada, a federal lender, will provide interest-free loans of between C$2.5 million and C$5 million to affected businesses as part of the support measures.
Industry Minister Mélanie Joly said companies receiving the loans would have 36 months before repayments are required. The support package is intended to help Canadian businesses manage the financial pressure created by the new tariffs while the trade dispute continues.
Canada's response is also intended to put political pressure on the United States.
Joly said the government selected some products with particular U.S. states in mind. She said the approach was designed not only to protect Canadian businesses but also to influence political pressure ahead of the November 3 U.S. midterm elections.
The move adds a political dimension to the growing trade dispute between the two countries.
The latest tariffs come after Canada and the United States failed to reach an agreement following intensive negotiations. Canadian Prime Minister Mark Carney previously said Canada would respond to the new U.S. tariffs on a dollar-for-dollar basis, arguing that the measures were necessary to protect Canadian workers, farmers, families and businesses.
The dispute has created additional uncertainty for businesses operating across the two countries, whose economies are closely linked through manufacturing, agriculture, energy and other industries.
The new Canadian tariffs are scheduled to take effect on September 8, giving businesses on both sides of the border time to assess the potential impact on costs, supply chains and trade.
For Canada, the combination of retaliatory tariffs and financial assistance represents an effort to respond to U.S. trade measures while limiting the impact on domestic businesses and workers.
The latest move marks another escalation in the trade dispute and could add pressure on both governments to find a new path toward resolving their differences.
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