Ottawa has announced punitive duties of up to 50% on a broad range of American imports, including vehicles, household appliances and agricultural machinery, in a significant escalation of the North American trade dispute. The move came as Washington signalled that further retaliatory measures against Canada were already under consideration.
Ottawa unveils three-tier tariff regime
Canada will impose tariffs of 15%, 25% and 50% on a wide array of US products from September 8, the country’s finance ministry said in a statement.
The measures target almost $20bn (£16bn) worth of American goods and apply to cars and motorcycles, household appliances, agricultural equipment, electrical devices, paper and cardboard. Duties on steel, aluminium and related products have been raised from 25% to 50%.
The announcement marks one of the most aggressive Canadian trade responses in recent memory, and is designed to mirror the scale and scope of US restrictions introduced earlier in the summer.
Support package for affected businesses
Alongside the tariffs, Canada unveiled a $5.4bn support package aimed at professional and commercial organisations hit by American duties. The assistance includes streamlined access to unemployment benefits and expanded credit programmes for businesses facing disruption.
The government said the package was intended to cushion the domestic impact of the trade dispute while reinforcing Canada’s negotiating position.
White House weighs further escalation
The Trump administration is already discussing additional trade sanctions against Canada in response to the measures announced by Prime Minister Mark Carney, according to Bloomberg, which cited people familiar with the matter.
A White House official said the United States could pursue further escalation, including higher tariffs and other trade measures. The official added that President Donald Trump had “a full arsenal of tools” at his disposal in the dispute with Ottawa. A US response is expected imminently.
A deepening trade rift
In July, President Trump signed an executive order imposing 50% tariffs on a range of Canadian imports. The duties were initially postponed in an effort to negotiate a broader trade agreement, but no deal was reached.
On Saturday, US tariffs of 50% on $20bn worth of Canadian goods came into force. On Monday, Trump announced that from January 1, 2027, US tariffs on Canadian-made cars, lorries, auto parts and steel would also stand at 50%.
Prime Minister Carney has repeatedly promised that Ottawa would deliver a symmetrical response to Washington’s actions.
