Canada's $27.6 Billion Retaliatory Tariffs on US Goods Take Effect

Canada's counter-tariffs on roughly $27.6 billion of US goods took effect at 12:01 a.m. on September 8, escalating the trade rift that began when Washington's Section 338 tariffs (50% on ~$20B of Canadian autos, alcohol, and dairy) took effect August 22 after trade talks collapsed. Ottawa's countermeasures are tiered at 15%, 25%, or 50% depending on the product, largely matching the corresponding US rate: steel, aluminum, and iron products face a 50% Canadian tariff, along with furniture, motorcycles, and clothing, while dairy, seafood, and appliances face 25%, and other industrial goods face 15%. The measures apply only to goods originating in the US and exempt shipments already in transit when the tariffs came into force. Prime Minister Mark Carney had announced the package August 25, alongside a C$7.5B (US$5.4B) support fund for affected Canadian workers and businesses, describing the response as 'dollar for dollar.' Two days after that announcement, Trump additionally threatened 50% tariffs on Canadian autos, auto parts, and steel starting January 1, 2027, leaving the bilateral relationship on an escalatory track heading into the fall.