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Canada Imposes Tariffs on US Goods Amid Trade Standoff
Confirmed
In Short: Canada's retaliatory tariffs on US goods, including milk and steel, take effect as trade talks remain stalled.
The counter-tariffs, which range from 25% to 50%, target a wide array of goods, including steel, furniture, cotton T-shirts, and dairy products. "We are striking back at the U.S. trade war with tariffs the federal government says are targeted at the sectors most affected by the Trump administration’s tariffs," a spokesperson for the Canadian government said.
The aerospace industry, one of the largest in Canada, is particularly affected. According to a report by accounting firm PwC, the sector contributes over C$7 billion to Canada's annual GDP in 2024. The tariffs will apply to imports both below and above the quota rate, according to the Finance Department.
On August 26, Ottawa reversed course on planned seafood tariffs and removed them from the list of goods, citing feedback from the fishing and processing sectors. However, Canada is still targeting U.S. wood products with 25% tariffs and American natural honey and molasses with 50% tariffs. Additionally, a 25% tariff is hitting appliances, including stoves and ranges, refrigerators and freezers, laundry machines, and small appliances like rice cookers, bread makers, grills, and cooking plates.
The tariffs also include a 50% tariff on a variety of American dairy products, including milk and cream, whey, and several milk and whey protein products. "The ball is in Canada's court," said US trade representative Jamieson Greer on Thursday.
What's confirmed
What's still developing
- Both US and Canadian officials have said they would like to strike a deal, but no movement has been made to resume talks after they collapsed in late August.
- Carney has said he wants to diversify Canada's trade away from the US.
- Canada's retaliatory tariffs on a range of US goods came into effect on Tuesday, with no sign of a trade deal on the horizon.
- Here’s a look at the new levies coming into effect: A 50 per cent tariff is being applied to a variety of American dairy products.
- On Aug. 22, US President Donald Trump launched tariffs on nearly $28 billion of Canadian goods, from hockey sticks and cement to honey, after trade talks broke down between the two nations.