Canada announced on Tuesday a set of retaliatory tariffs on U.S. goods worth approximately 27.6 billion Canadian dollars (around 20 billion U.S. dollars), with rates of 15%, 25%, or 50% depending on the sector, marking the latest escalation in the trade war between the two countries, according to the EFE agency.
The new measures, announced by the Canadian Ministry of Finance, will take effect at 12:01 AM on September 8 and will mirror the rates that Washington applies to Canadian goods, as a symmetrical response designed to pressure the Trump administration.
The affected sectors include steel, electronics, dairy, appliances, agricultural machinery, and pulp and paper.
Along with the levies, Ottawa presented a support package of 7.5 billion Canadian dollars aimed at workers and companies affected by the conflict, which includes support for small and medium-sized enterprises, a financing line for business liquidity, and assistance for at-risk workers.
The announcement comes three days after the failure of the trade negotiations between Washington and Ottawa, which collapsed on Friday, August 22, without an agreement. This date also marked the enforcement of the 50% U.S. tariff on Canadian imports, equivalent to about 5% of Canada’s exports to the United States.
The versions regarding the failure of the negotiations are contradictory. The U.S. trade representative, Jamieson Greer, attributed the collapse to last-minute Canadian demands.
Instead, Prime Minister Mark Carney argued that it was Washington that introduced unacceptable conditions, including requirements regarding the use of French in labels and instructions, and restrictions on Canada's ability to enter into future free trade agreements.
On Monday, Trump also announced a new escalation: a 50% tariff on vehicles, auto parts, and Canadian steel starting January 1, 2027, which effectively ruled out any short-term agreement.
The conflict has its roots in February 2025, when the Trump administration imposed a 25% tariff on most Canadian imports, and Canada retaliated with equivalent measures.
Tensions escalated in March of that year with a 50% tariff on Canadian steel and aluminum, and continued to rise with new rounds in August 2025 — when tariffs on products outside of the USMCA increased to 35% — and in July 2026, when Trump signed an executive order to impose a 50% tariff on most Canadian imports and also refused to renew the USMCA.
With the new Canadian tariffs set to take effect on September 8 and Washington showing no signs of resuming dialogue, the trade war between the two North American neighbors shows no signs of easing.
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