Canada Sets Counter Tariffs of 15 to 50 Percent on 27.6 Billion Canadian Dollars of U.S. Goods from September 8
Canada announced counter tariffs on products covering 27.6 billion Canadian dollars of imports from the United States, at rates of 15, 25 and 50 percent, effective at 12:01 a.m. on 8 September, the Department of Finance said on Tuesday. The measure responds to a United States decision to impose a 50 percent tariff affecting 27.6 billion Canadian dollars of Canadian goods that took effect on 22 August, and Ottawa said its response was matched dollar for dollar and rate for rate.
A matched response across specific sectors
The counter tariffs apply only to goods originating in the United States, and goods already in transit to Canada when the measures take effect are exempt. Ottawa said the affected products are drawn from those targeted by the United States under its Section 338 and Section 232 tariffs, and focus on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Goods carrying the 50 percent rate include steel and aluminium products previously subject to 25 percent, furniture, and clothing and apparel, while the 25 percent rate covers appliances, dairy products such as cheese, fish and seafood, and certain steel and aluminium derivatives. Reuters reported the value as about 20 billion United States dollars, the equivalent of the 27.6 billion Canadian dollars stated by the government.
| Measure | Detail |
|---|---|
| Scope | C$27.6bn of U.S. imports |
| Rates | 15%, 25% and 50% |
| Effective | 12:01 a.m., 8 September 2026 |
| Responds to | U.S. 50% tariff on C$27.6bn of Canadian goods, from 22 August |
Department of Finance Canada, 25 August 2026. The figure is stated by the government in Canadian dollars; the United States-dollar equivalent of about 20 billion is per Reuters.
Ottawa adds a 7.5 billion dollar support package
The government paired the tariffs with a 7.5 billion Canadian dollar package of new and enhanced support for affected workers and businesses. It comprises an additional 1.5 billion Canadian dollars through the Regional Tariff Response Initiative, a 500 million Canadian dollar liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program, 2 billion Canadian dollars through a new Canada Strong Diversification Fund, and 3.5 billion Canadian dollars of Rapid Response Supports for Workers and Employers. The government said this builds on nearly 25 billion Canadian dollars of support provided since the United States tariffs began.
Why it matters: The counter tariffs raise the cost of a defined slice of cross-border trade between two of the world’s most integrated economies, and the escalation touches specific sectors on both sides of the border. The Canadian response is scaled to the size of the United States measure, and the 7.5 billion Canadian dollar support package is intended to offset the domestic cost of the tariffs through liquidity, business investment, and worker support. The eventual effect will depend less on the headline figure than on how quickly importers can switch to other suppliers and how much of the tariff is passed into prices.
Outlook: The tariffs take effect on 8 September, and the near-term question is whether the two sides negotiate before then or add further measures. The mix of 15, 25 and 50 percent rates and the list of covered products will determine which industries feel the largest effect, and the longer the measures remain, the greater the incentive for companies to shift sourcing rather than absorb the cost.
Sources: Department of Finance Canada, 25 August 2026.
