OTTAWA, ONTARIO / RankWire.AI / – In response to recent U.S. tariffs, which targeted C$27.6 billion of Canadian exports with a 50% duty, Canada has halted bilateral trade talks after rejecting Washington’s proposed new terms. As a countermeasure, Ottawa prepared a series of tariffs affecting various key sectors. These U.S. actions utilize Section 338 of the Tariff Act of 1930 along with separate authorities under Section 232. The existing Canadian counter tariffs on U.S. automobiles will continue alongside the new tariffs.
Canada’s 50% tariff category includes steel and aluminum products that previously faced a 25% Canadian counter tariff, as well as furniture, clothing, and apparel. The 25% rate applies to appliances, dairy products such as cheese, and certain steel and aluminum derivative items. Additional targeted sectors comprise agricultural equipment, pulp and paper, and electronics. Canada explained that the expanded list emphasizes sectors already impacted by U.S. tariffs.
Tariffs Impact Major Sectors of Goods
To support those affected, the federal government unveiled C$7.5 billion in new and expanded assistance for workers and businesses. The package includes C$1.5 billion allocated to the Regional Tariff Response Initiative and an additional C$500 million in liquidity through the Business Development Bank of Canada’s Pivot to Grow program. Ottawa also assigned C$2 billion to the Canada Strong Diversification Fund. Furthermore, the government has eased access to existing tariff support programs by lowering the minimum revenue threshold to C$1 million.
A portion of the aid, amounting to C$3.5 billion, will be used for rapid response measures that include temporary Employment Insurance flexibilities, workforce training, and a new program focused on worker retention and retraining. Finance Minister François-Philippe Champagne stated that the counter tariffs will mirror the U.S. measures dollar for dollar and rate for rate. The government emphasized that this new package builds upon nearly C$25 billion in support provided since the initial U.S. tariffs were implemented.
Effective September 8, duties will be enforced
These tariffs will only apply to goods that meet Canada’s origin criteria under its country of origin regulations. Goods already en route to Canada when the tariffs come into effect will not be subject to the new measures. The duties will commence at 12:01 a.m. on September 8, with the Canada Border Services Agency overseeing their enforcement at border crossings. Requests for exceptional relief will still be possible through Canada’s tariff remission framework.
The product list broadens the scope of the trade dispute beyond metals and automobiles to include household and industrial items. This encompasses dairy, seafood, machinery, apparel, furniture, appliances, and electronics. Tariff rates are set at 15%, 25%, or 50%, depending on the product category. These measures will operate alongside existing Canadian counter tariffs on U.S. automobiles, which remain in effect.