Canada launches $28-billion countertariff on U.S. goods Tuesday as trade war escalates
Retaliatory tariffs on steel, aluminum, textiles, and hundreds of other products take effect at 12:01 a.m. Tuesday. Trump administration vows swift retaliation.
The day's top stories, food & events — every morning at 7. Unsubscribe anytime.
Canada will impose retaliatory tariffs on $28 billion worth of U.S. imports starting at 12:01 a.m. Tuesday, September 8, escalating an intensifying trade war with the United States.
The countertariffs apply to steel, aluminum, textiles, stoves, dairy, copper, beauty products, and hundreds of other goods. The move comes in response to 50 per cent U.S. tariffs imposed by President Donald Trump on Canadian goods after Prime Minister Mark Carney withdrew from trade talks August 21.
No formal meetings between Canadian and American officials were held over the Labour Day weekend to avert the retaliatory measures. The last formal talks between the two countries occurred August 21. Canada's top trade negotiator Janice Charette and Trade Minister Dominic LeBlanc held no discussions with U.S. counterparts this weekend, with none scheduled going forward. Carney last spoke with Trump during the week formal talks ended.
Finance Minister François-Philippe Champagne's office confirmed Sunday that Canada's countertariff plan will proceed as planned.
The Trump administration has pledged to retaliate no later than Wednesday, with possible measures including banning imports of Canadian alcohol, dairy, and steel. Some within the administration are calling for more punitive actions, though specifics remain unclear. On social media Sunday, Trump suggested renaming Lake Ontario "Lake America" and posted that the Canadian dollar's exchange rate with the U.S. has been "unacceptable … for years – but no longer." Treasury Secretary Scott Bessent told Fox News that U.S. retaliation "is not much of a hit to us, if any."
Canadian businesses reliant on American inputs face mounting costs. The Canadian Manufacturers and Exporters organization warns that countertariffs will increase expenses for smaller manufacturers, and has asked the federal government to continue providing tariff remission for companies unable to competitively source alternative inputs. CEO Dennis Darby said: "The ultimate objective must remain the removal of U.S. tariffs and a durable agreement that restores certainty for manufacturers and workers on both sides of the border."
What specific tariff rates apply to each product category in Canada's $28-billion response?
How will the retaliatory measures announced by the Trump administration by Wednesday impact Canadian small manufacturers reliant on U.S. inputs?
We'll update this story as answers emerge.
By the numbers
How much are Canada's retaliatory tariffs worth?
Canada is imposing $28 billion in countertariffs on U.S. imports, effective at 12:01 a.m. on September 8, 2026.
What products do Canada's countertariffs cover?
The countertariffs apply to steel, aluminum, textiles, stoves, dairy, copper, beauty products, and hundreds of other goods.
When did formal trade talks between Canada and the U.S. last occur?
The last formal talks between Canada and the United States took place on August 21, 2026, when Prime Minister Mark Carney withdrew from trade negotiations.
