Canada will impose additional tariffs of 15%, 25% and 50% on American goods worth 27.6 billion Canadian dollars ($19.9 billion), starting September 8, Canada's Department of Finance said in a statement on August 25.
The countertariffs respond to a decision by the United States to impose a 50% tariff on $27.6 billion Canadian dollars worth of Canadian goods, which took effect on August 22.
Alongside the new tariffs, the Canadian government announced a 7.5 billion Canadian dollar ($5.4 billion) support package for businesses and workers.
Canadian Finance Minister François-Philippe Champagne said Canada had chosen to protect Canadians, adding that the countertariffs, matching the American measures dollar for dollar and rate for rate, together with the multibillion-dollar support package, would protect workers, farmers, families and business.
What the new tariffs cover
The size of Canada's new countertariffs will match the US tariffs and apply to goods covered by the American measures, including steel, dairy products, household appliances, agricultural equipment, pulp and paper, and electronics.
A 50% tariff will apply to steel and aluminum, which had previously faced a 25% Canadian tariff, as well as to furniture, clothing and footwear. A 25% tariff will apply to household appliances, dairy products, fish and seafood, and certain steel and aluminum products.
Canada's existing countertariffs on American goods, including cars, remain in place.
Support package for businesses
The new 7.5 billion Canadian dollar support package adds to almost 25 billion Canadian dollars ($18 billion) in aid the government has already provided since the US tariffs were introduced.
Canada will also expand business access to existing tariff programs and simplify the conditions for receiving aid.
Background to the trade dispute
Canada is one of the few countries that imposed trade restrictions in response to President Donald Trump's tariffs from the outset. Those measures included countertariffs on $60 billion Canadian dollars worth of consumer goods and additional tariffs on American cars.
In August 2025, Canada and the United States agreed to restore duty-free trade for most goods, with a 35% rate applied to the remainder. As a result, the effective tariff rate on Canadian goods was set to be 5.6%, compared with an average rate of 16% for the rest of the world.
In early 2026, the US Supreme Court ruled that Trump's earlier tariffs, which had been in effect since August 7, 2025 and were imposed through an emergency-powers mechanism, were illegal. The United States then introduced temporary 10% tariffs, which expired on July 24, 2026.
Trump subsequently imposed new tariffs of 10% to 12.5% on 60 countries under Section 301 of the Trade Act of 1974, citing efforts to combat unfair trade practices.
