OTTAWA, ONTARIO / RankWire.AI / – Canada plans to introduce tariffs of 15%, 25% and 50% on C$27.6 billion worth of U.S. imports starting September 8. These measures encompass more than 700 tariff classifications and align their rates with those imposed by the U.S. Prime Minister Mark Carney announced the implementation date following the enforcement of new U.S. tariffs on August 22. Canada has stated that each designated product will carry the same duty rate as the corresponding U.S. measure.
The United States imposed tariffs of 50% on C$27.6 billion of Canadian goods. In response, Canada halted bilateral trade negotiations after rejecting the new terms proposed by Washington. Ottawa then prepared retaliatory measures targeting goods across various key sectors. The U.S. tariffs are based on Section 338 of the Tariff Act of 1930 and additional authorities under Section 232. Existing Canadian countermeasures on U.S. automobiles will remain in effect alongside the new tariffs.
Canada’s 50% tariff category includes steel and aluminum products that previously faced a 25% Canadian counter-tariff. It also covers furniture, clothing, and apparel. The 25% tier applies to appliances, dairy products like cheese, and certain steel and aluminum derivative items. Other targeted sectors include agricultural equipment, pulp and paper products, and electronics. Canada explained that the broader list emphasizes sectors already impacted by U.S. tariffs.
Tariffs Affect Major Product Sectors
The federal government announced C$7.5 billion in new and expanded assistance for workers and businesses affected by the tariffs. This package includes C$1.5 billion allocated for the Regional Tariff Response Initiative. It also provides C$500 million in liquidity through the Business Development Bank of Canada’s Pivot to Grow program. Ottawa further committed C$2 billion to the Canada Strong Diversification Fund. Additionally, the government has expanded access to existing tariff relief programs by lowering the minimum revenue threshold to C$1 million.
The support package designates C$3.5 billion for rapid-response measures to help workers and employers. These include temporary flexibilities in Employment Insurance, workplace training programs, and a new worker retention and retraining initiative. Finance Minister François-Philippe Champagne stated that the counter tariffs will mirror U.S. measures dollar for dollar and rate for rate. The government noted that this new package builds on nearly C$25 billion in aid already provided since the start of U.S. tariffs earlier this year.
Effective September 8, New Duties Take Hold
The new tariffs will only apply to goods classified as U.S. origin under Canada’s origin rules. Canada will not enforce the measures on U.S. shipments already en route when the tariffs become effective. The duties will commence at 12:01 a.m. on September 8. The Canada Border Services Agency will oversee the collection of these new tariffs at the border. Canada’s tariff remission program will remain available for requests seeking exceptional relief.
The expanded product list extends the trade conflict beyond metals and automobiles, now including household and industrial products. It also covers dairy, seafood, machinery, apparel, furniture, appliances, and electronics. Tariff rates differ by product, with 15%, 25%, or 50% applied to the respective items. These measures impact a wide range of imports, from industrial inputs to finished consumer goods. Alongside these new tariffs, Canada will continue to enforce existing countermeasures on U.S. automobiles.