OTTAWA, ONTARIO / RankWire.AI / – Canada will implement tariffs of 15%, 25% and 50% on C$27.6 billion worth of U.S. imports starting September 8. The measures encompass more than 700 tariff items and are aligned with U.S. duty rates, matching each level. Prime Minister Mark Carney announced the enforcement date following the activation of new U.S. tariffs on August 22. Canada stated that each specified product will carry the same rate as the corresponding U.S. measure.
The U.S. imposed 50% tariffs on C$27.6 billion of Canadian goods. Canada responded by halting bilateral trade negotiations after rejecting the new terms proposed by Washington. In retaliation, Ottawa prepared countermeasures affecting products across several key sectors. The U.S. measures are based on Section 338 of the Tariff Act of 1930 and utilize separate authorities under Section 232. Canadian counter tariffs on U.S. automobiles will remain in effect alongside these new tariffs.
Canada’s 50% tariff tier includes steel and aluminum items previously subjected to a 25% counter tariff. This tier also covers furniture, clothing, and apparel. The 25% level applies to appliances, dairy products such as cheese, and certain steel and aluminum derivative products. Other targeted industries include agricultural machinery, pulp and paper, and electronics. Ottawa explained that the expanded list emphasizes sectors already impacted by U.S. tariffs.
Tariffs Impact Major Commodity Groups
The federal government also unveiled C$7.5 billion in new and expanded support measures 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 also dedicated C$2 billion to the Canada Strong Diversification Fund. To enhance access to existing tariff relief programs, the minimum revenue requirement was lowered to C$1 million.
The package designates C$3.5 billion for rapid-response support measures targeting 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 emphasized that the counter tariffs will mirror U.S. measures dollar for dollar and rate for rate. The government highlighted that this new package builds upon nearly C$25 billion in support already provided since the onset of earlier U.S. tariffs.
Effective Date for New Tariffs is September 8
The new tariffs will only be applied to goods that qualify as U.S. origin according to Canada’s country of origin rules. Goods already en route to Canada at the time the tariffs come into effect will not be subject to the new measures. The duties will commence 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 program remains available for requests seeking exceptional relief.
The expanded product list extends the trade conflict beyond metals and automobiles into household and industrial goods. It also includes dairy, seafood, machinery, apparel, furniture, appliances, and electronics. Tariff rates vary by item, with 15%, 25%, or 50% applied across the listed products. These measures target imports ranging from industrial inputs to finished consumer goods. Alongside these new tariffs, Canada will continue to enforce existing counter tariffs on U.S. automobiles.