Trade Advisory: Canada announces “Retaliatory Tariffs” on USA

Overview

Canada announces a “dollar for dollar” retaliatory tariff plan on US imports with rates as high as 50%. The Canadian tariffs will apply to nearly $20 billion worth of American products targeted to match Canadian goods affected by US tariffs initiated by President Trump. Product include steel articles, furniture, fresh tuna, and cotton T-shirts.

Scope and Rates

Tariff rates will range from 15% to 50%, depending on products:

• 50%; steel, aluminum, lumber, furniture, clothing, and certain appliances.
• 25%; dairy, cheese, fish, seafood, appliances, agriculture equipment, electronics, pulp, and paper.
• 15%; electronics, tools, machinery parts, other goods.

A complete list of effected commodities and rates can be found on the Canadian Department of Finance website!

Canada’s Position

“Over the last several months, the Government of Canada has negotiated intensively and in good faith with the United States (U.S.) to conclude a mutually beneficial trade arrangement. However, the concessions that were asked of Canada were neither fair nor economically sound, and would have undermined the interest of workers, businesses, and all Canadians.”

“As a result of the U.S.'s decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, 2026, the Prime Minister announced that Canada will match the incoming U.S. Section 338 tariffs – dollar for dollar.”

Effective Dates

These new countermeasures on $27.6 billion in products imported from the U.S. will be effective as of 12:01 a.m., September 8, 2026.

Existing Countermeasure still apply: The new targeted counter tariffs are concentrated in sectors such as steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. In certain sectors, such as steel and aluminum, existing counter-tariffs will increase from 25 per cent to 50 per cent to match U.S. rates. Other existing counter-tariffs, including against U.S. autos, will also continue to apply.

Recommended Actions

Crane Trade Consulting recommends that importers take immediate action to review their Supply chains and export volumes to Canada. U.S. Exporters should immediately identify whether their products are affected by these sweeping countermeasures.

Disclaimer

This advisory is provided for informational purposes only and does not constitute legal advice. The information is based on publicly available government sources and announced in Canada Gazette Publications as the official, authoritative source for Canada Customs Notices and countermeasure details. Canada's tariff responses to the changing global trade landscape - Canada.ca. Importers should consult qualified legal counsel and trade compliance professionals before making decisions based on evolving trade policy developments.

How Crane Trade Consulting Can Help

Crane Trade Consulting can assist exporters with product review and cost analysis/assessment. For additional consultation on a case-by-case basis, please contact our Trade Advisorory team.