Canada on Tuesday announced retaliatory tariffs ranging from 15% to 50% on a range of US goods, escalating a growing trade dispute between the two historically close allies.
Ottawa said the counter-tariffs will come into force on September 8, a timeline previously outlined by Prime Minister Mark Carney after US President Donald Trump’s 50% tariffs took effect on Saturday.
Canadian officials said the new duties would broadly match the levels imposed by Washington and affect several major sectors, including steel, dairy products and electronics. The Canadian government also unveiled a $5.4 billion (CA$7.5 billion) support package aimed at helping businesses and workers affected by the escalating trade measures.
“This is an unprecedented challenge in the moment,” officials were quoted as saying, with Finance Minister remarks framing the response as necessary to protect Canadian industry from the fallout of Washington’s tariffs.
“I think what Canadians can see this morning is that we stand united,” Carney added. “Canada must respond and today we are, in a proportionate, targeted and strategic way.”
Industry Minister Melanie Joly also urged Canadians to support domestic businesses, while pledging to strengthen economic ties with new allies and trading partners. “We cannot wait for Washington to decide our future,” she said.
The tit-for-tat measures mark a sharp deterioration in what had long been one of the world’s most integrated trading relationships, with steel, dairy and electronics among the sectors most exposed to disruption on both sides of the border. The dispute follows Trump’s decision to impose 50% tariffs on Canadian goods over the weekend, prompting Ottawa’s calibrated but firm response. With both sides signalling no immediate sign of de-escalation, businesses on either side of the border now face mounting uncertainty over supply chains, pricing and cross-border trade in the weeks ahead.