Canadian counter-tariffs take effect as trade dispute with U.S. escalates

Canada imposed a new round of counter-tariffs on American goods Tuesday, escalating its trade dispute with the United States after bilateral negotiations collapsed in August. The measures apply tariffs of 15%, 25% or 50% to approximately $27.6 billion in U.S. imports, with rates generally matching those imposed by Washington. More than 700 product categories are affected, including steel, dairy products, agricultural equipment, appliances, electronics, furniture and pulp-and-paper goods.

The tariffs are expected to increase costs for some Canadian importers and businesses that depend on American machinery, materials or components. Alberta agricultural and energy companies could face higher equipment and steel costs, while B.C. manufacturers, retailers and forestry businesses may encounter new supply-chain pressures. American goods already in transit when the tariffs took effect at 12:01 a.m. on Sept. 8 are exempt, but businesses ordering new shipments will have to determine whether the products fall under the federal surtax schedule.

Prime Minister Mark Carney has characterized the measures as a dollar-for-dollar response intended to protect Canadian workers and strengthen Ottawa’s negotiating position. Reuters reported Tuesday that no formal ministerial or official-level trade talks were underway, increasing uncertainty around the broader North American trade relationship. Ottawa has opened regional assistance programs offering liquidity and market-diversification funding to tariff-affected businesses, but the political durability of its strategy may depend on how quickly higher costs reach employers and consumers.