Ottawa: Canada has announced a dollar-for-dollar response to the latest US trade measures, with Prime Minister Mark Carney unveiling new counter-tariffs and a fresh support package for workers and businesses affected by the escalating trade dispute between the two countries.
Carney said on Tuesday that Ottawa would match the latest US tariffs while introducing additional assistance worth US$7.5 billion. The new measures will supplement nearly US$25 billion in support programmes that Canada says have already been rolled out since the United States began imposing tariffs.
The Canadian government said the measures are intended to protect jobs, businesses and families as trade tensions with Washington continue to intensify.
Canada to Impose New Counter-Tariffs
Canada’s Department of Finance said counter-tariffs on selected US products will take effect from September 8. Depending on the corresponding US duties imposed under Section 338 and Section 232 measures, the Canadian tariffs will be set at 15%, 25% or 50%.
The measures will cover approximately US$27.6 billion worth of American imports. Products affected include steel, dairy products, household appliances, agricultural machinery, pulp and paper goods and electronics.
Finance Minister François-Philippe Champagne said Ottawa decided to proceed with the measures after trade negotiations with Washington stalled. He argued that the terms proposed by the United States were not acceptable to Canada and that Washington was demanding significant concessions without offering sufficient benefits in return.
Champagne said the combination of retaliatory tariffs and financial support would help Canadian workers, farmers, families and businesses manage the economic impact of the new trade restrictions.
Trade Talks With Washington Stall
The Canadian government said discussions with the United States had been suspended following the latest proposals from Washington. Ottawa maintained that the proposed terms did not adequately serve Canadian economic interests.
The latest measures represent a further escalation in a dispute that has already disrupted trade between the two neighbouring economies.
Washington has imposed 50% duties on around US$20 billion of Canadian imports following the breakdown of negotiations. The affected goods represent approximately 5% of Canada’s exports to the United States, according to the information provided by the Canadian government.
Trump Signals Higher Tariffs on Canadian Automobiles
The trade dispute could intensify further after US President Donald Trump indicated that tariffs on Canadian automobiles, trucks, automotive components and steel could rise to 50% from January 2027.
Trump has argued that Canadian companies benefit substantially from access to the US market and has accused Canada of maintaining unfair trade practices. He has also criticised Canadian tariffs affecting American agricultural products.
Trump said businesses could avoid some tariffs by shifting production to the United States, while stressing the scale of the US market and Washington’s economic leverage in the bilateral relationship.
Businesses Brace for Prolonged Trade Uncertainty
The latest exchange of tariffs adds to uncertainty for companies operating across the highly integrated US-Canadian economy. Businesses in manufacturing, agriculture, steel, automotive production and consumer goods are likely to face higher costs as the two governments impose additional trade barriers.
Canada’s decision to combine retaliatory tariffs with a US$7.5 billion support package suggests Ottawa is preparing for the possibility that the dispute could persist rather than be resolved quickly.
The next phase will largely depend on whether Washington and Ottawa can return to negotiations and reach an agreement capable of reducing trade barriers. Until then, businesses on both sides of the border face higher costs, disrupted supply chains and continued uncertainty over the future of bilateral trade.
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