Canada announced on Tuesday it will impose retaliatory tariffs on approximately $20 billion worth of U.S. imports, covering roughly 4.5% of annual bilateral trade based on 2024 figures. The measures, effective September 8, target around 700 products across multiple sectors with duties ranging from 15% to 50%.
The highest 50% tariffs will apply to steel, aluminum, furniture and clothing, while 25% duties will cover cheese, appliances and certain seafood products. Electronics and tools will face 15% tariffs. The announcement follows the U.S. imposition of 50% tariffs on $20 billion of Canadian imports, which took effect over the weekend.
In addition to counter-tariffs, Ottawa unveiled a C$7.5 billion support package to mitigate economic impacts on businesses, workers and families. The Business Development Bank of Canada will offer interest-free loans between C$2.5 million and C$5 million to affected companies, with no repayments required for 36 months. Finance Minister François-Philippe Champagne stated the measures aim to provide dollar-for-dollar retaliation and protect key industries.
Industry Minister Melanie Joly highlighted strategic targeting of products from U.S. states to apply political pressure. The counter-tariffs were announced as U.S. midterm elections approach on November 3, with analysts noting potential vulnerabilities in wood products such as kitchen cabinet manufacturers. The measures reflect escalating trade tensions following recent U.S. tariff actions and rhetoric, including proposals to rename Lake Ontario as "Lake America."
