OTTAWA, ONTARIO / RankWire.AI / – Canada is set to introduce tariffs of 15%, 25%, and 50% on C$27.6 billion worth of U.S. imports starting September 8. These measures encompass more than 700 tariff classifications and are aligned with U.S. duty rates, matching them exactly. Prime Minister Mark Carney announced the start date after the U.S. imposed new tariffs on August 22. Canada clarified that each selected product will bear the same tariff rate as its American counterpart.
The United States enacted tariffs up to 50% on C$27.6 billion of Canadian exports. Following this, Canada suspended bilateral trade negotiations after rejecting Washington’s proposed new terms. As a response, Ottawa prepared retaliatory measures affecting key sectors. The U.S. tariffs are based on Section 338 of the Tariff Act of 1930 as well as Section 232 authorities. Existing Canadian counter tariffs on U.S. automobiles will continue to be in effect alongside the new measures.
Canada’s 50% tariff level includes steel and aluminum products that previously faced a 25% Canadian counter tariff. It also targets furniture, clothing, and apparel. The 25% level applies to appliances, dairy products such as cheese, and certain steel and aluminum derivative goods. Other sectors impacted include agricultural equipment, pulp and paper, and electronics. Canada stated that this broader list emphasizes sectors already affected by U.S. tariffs.
Tariffs Cover Major Sectors of Goods
The Canadian government also announced a new support package totaling C$7.5 billion for workers and businesses impacted by the tariffs. This includes C$1.5 billion allocated to the Regional Tariff Response Initiative. An additional C$500 million in liquidity will be provided 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 increase access, the government lowered the minimum revenue requirement for existing tariff programs to C$1 million.
This package allocates C$3.5 billion for quick-response measures for workers and employers, including temporary Employment Insurance flexibilities, workplace training, and a new program for worker retention and retraining. Finance Minister François-Philippe Champagne stated that the counter tariffs will mirror the U.S. measures dollar for dollar and rate for rate. The government emphasized that this initiative builds upon nearly C$25 billion in support already provided since the initial U.S. tariffs were introduced.
Tariffs Take Effect Starting September 8
The new duties will apply solely to goods classified as U.S. origin under Canada’s country of origin rules. Canada will exempt goods already en route when the tariffs come into force. The duties will begin at 12:01 a.m. on September 8, with the Canada Border Services Agency overseeing the implementation at border crossings. Canada’s tariff remission program remains available for requests seeking exceptional relief.
The product list broadens the scope of the trade dispute beyond metals and automobiles to include household and industrial goods. It also encompasses dairy, seafood, machinery, apparel, furniture, appliances, and electronics. The tariff rates differ per item, applying at 15%, 25%, or 50%. These measures impact everything from industrial inputs to consumer-ready products. Alongside the new tariffs, Canada will continue to enforce existing counter tariffs on U.S. automobiles.