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4w ago

U.S. Imposes 50% Tariffs on Canadian Goods as Ottawa Readies C$27.6B Countermeasures

Frozen negotiations have left Canada set to impose dollar‑for‑dollar countertariffs at 12:01 a.m. Tuesday, escalating a dispute that drew public criticism from President Trump over the Canadian dollar.

View of downtown Detroit from the Gordie Howe International Bridge, connecting Windsor, Ontario, and Detroit, Michigan, on September 6, 2025. Canada announced on August 25, 2026 counter-tariffs on US goods ranging between 15 and 50 percent, intensifying the trade war between the historically close allies. Ottawa's retaliation will take effect September 8, a timeframe earlier outlined by Prime Minister Mark Carney after US President Donald Trump's 50-percent duties came into place August 22, 2026. (Photo by JEFF KOWALSKY / AFP via Getty Images)
Steel coils at a Cleveland Cliff facility Middletown, Ohio, last month. Ohio will be particularly affected by Canada's countertariffs, which are due to come into effect early on Tuesday.
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Overview

  • The Trump administration used Section 338 to levy up to 50% duties on roughly C$20–27.6 billion of Canadian exports after talks collapsed in late August, a move that short‑circuited the normal multi‑party review process.
  • Canada announced matching countertariffs covering about C$27.6–28 billion of U.S. goods that will carry rates of 15%, 25% or 50% and are scheduled to take effect at 12:01 a.m. on Tuesday.
  • Formal negotiations remain frozen since the last talks on Aug. 21 and Ottawa says it will not return to the table until Washington changes course, with Prime Minister Mark Carney calling the U.S. action an attack.
  • Industry groups warn high headline tariffs will quickly disrupt tightly integrated North American supply chains — especially auto assembly — because importers and U.S. assemblers typically pay duties and could face halted lines.
  • The dispute broadened into a public political pressure campaign after President Trump posted on Truth Social about a Canadian‑U.S. currency “imbalance,” and U.S. officials are reported to be weighing further measures while legal challenges are likely.