OTTAWA, ONTARIO / RankWire.AI / – Canada will start applying tariffs of 15%, 25% and 50% on C$27.6 billion worth of imports from the United States beginning September 8. These measures encompass more than 700 tariff categories and are designed to mirror U.S. duties on a dollar-for-dollar basis. Prime Minister Mark Carney announced the date for implementation following the enactment of new U.S. tariffs on August 22. The Canadian government stated that each selected product will carry the same rate as the corresponding U.S. measure.
The United States imposed tariffs of 50% on C$27.6 billion of Canadian exports. In response, Canada halted bilateral trade negotiations after rejecting Washington’s proposed new terms. Ottawa then prepared retaliatory measures targeting goods across various key sectors. These U.S. measures are based on Section 338 of the Tariff Act of 1930 and also utilize separate authorities under Section 232. Canadian counter-tariffs on U.S. automobiles will remain in effect alongside the new tariffs.
The 50% tariff bracket includes steel and aluminum products that previously faced a 25% Canadian counter-tariff. It also applies to furniture, clothing, and apparel. The 25% tier encompasses appliances, dairy products such as cheese, and certain steel and aluminum derivative goods. Additional sectors targeted include agricultural machinery, pulp and paper products, and electronics. Canada explained that the broader list emphasizes sectors already impacted by U.S. tariffs.
Tariffs Impact Major Industrial and Consumer Goods
In addition, the federal government announced a new support package valued at C$7.5 billion for workers and businesses affected by the tariffs. Included in this package is C$1.5 billion allocated for the Regional Tariff Response Initiative, along with C$500 million in liquidity through the Business Development Bank of Canada’s Pivot to Grow program. Ottawa also designated C$2 billion to the Canada Strong Diversification Fund. The government has expanded access to existing tariff support programs by lowering the minimum revenue threshold to C$1 million.
Furthermore, C$3.5 billion has been set aside for swift response measures aimed at assisting workers and employers. These include temporary flexibilities in Employment Insurance, workplace training initiatives, and a new program focused on worker retention and retraining. Finance Minister François-Philippe Champagne stated that the counter tariffs will match the U.S. measures dollar for dollar and rate for rate. The government emphasized that this new support package builds upon nearly C$25 billion in aid provided since the initial U.S. tariffs were introduced.
Tariffs to Take Effect on September 8
The new tariffs will only be levied on goods that qualify as U.S. origin under Canada’s country of origin rules. Goods already in transit when the tariffs come into force will not be affected. The duties will commence at 12:01 a.m. on September 8, with the Canada Border Services Agency overseeing the collection of these new surcharges. Canada’s tariff remission system remains accessible for requests seeking exceptional relief.
The product list broadens the scope of the trade dispute beyond metals and automobiles to include household and industrial items. It also targets dairy, seafood, machinery, apparel, furniture, appliances, and electronics. The tariff rates vary depending on the product, set at 15%, 25%, or 50%. These measures impact both industrial inputs and finished consumer goods. Alongside these tariffs, Canada will maintain existing counter-tariffs on U.S. automobiles.