Canada retaliates with tariffs on U.S. dairy, seafood, and steel effective Sept. 8

Canada is striking back at U.S. tariffs with its own levies set to take effect Sept. 8, targeting sectors the federal government says were hit hardest by the Trump administration's duties.

The retaliatory measures hit dairy hard: a 50 per cent tariff applies to milk, cream, whey and protein powders, while fresh cheese and curd face 25 per cent duties. Under the Canada-U.S.-Mexico trade agreement, U.S. dairy imports were tariff-free below certain quotas; these new levies apply to all imports regardless of quota status.

Seafood faces a 25 per cent tariff across the board — live trout, salmon, halibut, lobster, shrimp, oysters and dozens of other species. Wood products are hit with 25 to 50 per cent duties depending on the product: softwood lumber at 25 per cent, plywood and veneered panels at 50 per cent, and sanitary products like toilet paper and facial tissue at 25 to 50 per cent.

Steel and aluminum products see rates raised from the current 25 per cent to 50 per cent, covering rods, bars, sheets, wires and prefabricated items like bridges and window frames. Canada had imposed its first 25 per cent tariff on American steel and aluminum in March 2025 after Trump's initial levies; Trump raised his rate to 50 per cent in June and has threatened to push it even higher on Jan. 1, 2027.

Cosmetics and some textiles round out the list, with perfumes, sunscreen, lip and eye makeup all subject to 50 per cent duties.

As HOC reported in August, Alberta liquor businesses had already braced for the impact of trade friction. The tariffs represent a significant escalation in what has become a sustained economic standoff between the two countries.