Adedokun Waliyu 
Canada has announced retaliatory tariffs ranging from 15% to 50% on a wide range of US goods, escalating the trade war between the two traditionally close allies.
The new measures will take effect on September 8, 2026, following the 50% tariffs imposed by the United States on selected Canadian goods after trade negotiations between Washington and Ottawa collapsed.
Canadian officials said the counter-tariffs are designed to match US tariff levels and will affect industries including steel, aluminium, dairy, electronics and consumer goods.
Products on the list include fresh and frozen fish, dishwashers, washing machines and railway construction materials. Some electric equipment and tools will face a 15% tariff, while several other products will attract duties of 25% or 50%.
Canada is also introducing a C$7.5 billion (US$5.4 billion) support package for businesses and workers affected by the trade dispute.
“This is an unprecedented challenge imposed on Canada. But Canada will meet the moment,” Finance Minister François-Philippe Champagne said.
He added that Canada would respond in a “proportionate, targeted and strategic way.”
What is affected?
Under Canada’s planned measures:
- Steel and aluminium products previously facing a 25% duty will rise to 50%.
- Appliances and dairy products, including cheese, will face 25% tariffs.
- Certain steel and aluminium derivative products will also face 25%.
- A smaller category of electric equipment and tools will attract 15%.
- Overall, the affected goods represent approximately 7.3% of Canada’s imports from the United States, based on 2024 trade levels.
The escalation follows President Donald Trump’s announcement on Monday that tariffs on Canadian automobiles and automotive parts could rise to 50% from January 1, 2027.
Ontario Premier Doug Ford has strongly criticised Trump’s measures, while Trump has responded with threats of “far worse” consequences.
Trump has also reignited his controversial proposal for Canada to become the 51st US state and said he was considering renaming Lake Ontario as “Lake America.”
Canada seeks new trading partners
Canadian Industry Minister Melanie Joly urged Canadians to support domestic businesses while promising to strengthen trade relationships with other countries.
The dispute comes as Canada seeks to reduce its heavy dependence on the United States. About 70% of Canada’s exports go to the US, making the country particularly vulnerable to prolonged trade restrictions.
Prime Minister Mark Carney has said Canada must diversify its trading relationships and strengthen its domestic economy.
The US and Canada are also facing difficult negotiations over the future of the US-Mexico-Canada Agreement (USMCA).
Analysts warn that the latest measures could trigger further rounds of retaliatory tariffs, increasing costs for businesses and consumers on both sides of the border.
