OTTAWA, ONTARIO / RankWire.AI / – Canada will activate tariffs of 15%, 25% and 50% on imports from the United States totaling C$27.6 billion starting September 8. The tariffs apply to more than 700 tariff classifications and are designed to mirror U.S. duties precisely. Prime Minister Mark Carney announced the implementation date following the enforcement of new U.S. tariffs on August 22. Canada has stated that each chosen product will bear the same rate as the corresponding U.S. tariff measure.
The U.S. imposed 50% tariffs on C$27.6 billion worth of Canadian goods, prompting Canada to halt bilateral trade negotiations after rejecting the new terms proposed by Washington. In response, Ottawa prepared retaliatory measures impacting goods across several key sectors. These U.S. tariffs are based on Section 338 of the Tariff Act of 1930 and also invoke authorities under Section 232. Existing Canadian counter tariffs on U.S. automobiles will stay in effect alongside the new retaliatory tariffs.
The 50% tariff level in Canada now includes steel and aluminum items previously subjected to a 25% counter tariff. Additionally, furniture, apparel, and clothing are part of this tier. The 25% rate applies to appliances, dairy products such as cheese, and certain steel and aluminum derivative items. Other targeted sectors encompass agricultural machinery, pulp and paper products, and electronics. Canada explained that the expanded list emphasizes sectors already impacted by U.S. tariffs.
Tariffs impact major sectors of goods
The federal government has also announced a support package totaling C$7.5 billion for workers and businesses affected by the tariffs. This package includes C$1.5 billion allocated for the Regional Tariff Response Initiative. An additional C$500 million will be provided as liquidity through the Business Development Bank of Canada’s Pivot to Grow program. Ottawa has also dedicated C$2 billion to the Canada Strong Diversification Fund. To facilitate access, the government has lowered the minimum revenue requirement for existing tariff programs to C$1 million.
Furthermore, C$3.5 billion has been set aside for swift assistance to workers and companies, including temporary flexibilities in Employment Insurance, workplace training programs, and a new initiative for worker retention and retraining. Finance Minister François-Philippe Champagne emphasized that the retaliatory tariffs will match U.S. measures dollar for dollar and rate for rate. The government highlighted that this new support builds on nearly C$25 billion provided since earlier U.S. tariffs took effect.
Effective September 8, new duties will be implemented
The tariffs will only apply to goods deemed U.S. origin according to Canada’s country of origin rules. Goods already in transit when the tariffs come into force will not be subject to the new measures. Duties will start at 12:01 a.m. on September 8. The Canada Border Services Agency will oversee the collection of these new surtaxes at border crossings. Canada’s tariff remission framework will still be available for requests seeking exceptional relief.
The list of products expands the scope of the trade conflict beyond metals and automobiles, including household and industrial items. The list also covers dairy, seafood, machinery, apparel, furniture, appliances, and electronics. Tariff rates vary by product, with 15%, 25%, or 50% applied across the listed items. These tariffs will affect imports ranging from industrial inputs to finished consumer goods. The measures will operate alongside existing Canadian counter tariffs on U.S. automobiles, which remain in place.