Canada Announces 15% to 50% Tariff from 8 September on US in Retaliation

Ø Full Scale US-Canada Tariff War

[ABS News Service/26.08.2026]

The Canadian government yesterday announced retaliatory tariffs on some $20 billion worth of US goods, matching duties imposed by the United States over the weekend on Canadian products after talks between the two countries broke down.

The Canadian tariffs will take effect on September 8 and will range from 15 percent to 50 percent across some 700 US products.

The highest tariffs – 50 percent – will be levied on US steel, aluminum, furniture and clothing, among other products. Cheeses, seafood and appliances from the United States will be hit with a 25 percent tariff, while a 15 percent tariff will be applied to products like tools and electronics.

At the same time, Canada announced a C$7.5 billion package of financial support for Canadian industries and workers impacted by the US tariffs.

In announcing the tariffs, Canada’s Department of Finance said Ottawa had negotiated in good faith with the United States toward “a fair and comprehensive trade agreement,” but at the last minute Washington “proposed new terms that were not in Canada’s best interest, basically, asking too much of Canada, and offering too little in return. Canada therefore suspended negotiations rather than accepting a bad deal that would undermine Canadian workers, businesses, strategic sectors, and our national interest. Canada did not choose this trade conflict, but we need to respond to provide a level playing field to our businesses.”

Trump’s Response

Canada’s action comes after the United States imposed a 50 percent tariff on $20 billion worth of Canadian products using a Depression Era tariff law that had never before been implemented.

President Trump responded with anger in a series of social media posts, accusing Canada of “ripping off” the United States and driving US companies out of business. “I deal with many countries, and Canada is easily the most difficult and unreasonable. They feel entitled, but they are not a State, and will be entitled no longer!”

In another post, Mr. Trump claimed that the United States is thinking about changing the name of Lake Ontario to Lake America because “we don’t expect to be doing much business with Ontario any longer.”