Canada began imposing retaliatory tariffs of 15%, 25% and 50% on September 8, 2026, on US imports worth 27.6 billion Canadian dollars, matching the value and rates of tariffs imposed by the United States on Canadian goods, according to Canada's Finance Ministry.
The tariffs cover hundreds of US products, focusing on steel and aluminum, dairy products, appliances and agricultural equipment, pulp and paper, plastics and electronics. Canada raised the tariffs on some steel and aluminum products from 25% to 50% to match the US rates, while retaliatory tariffs on US automobiles remain in place.
Washington expands its measures
The United States responded by announcing an import ban on categories of Canadian dairy products, including whey, as well as most alcoholic beverages and certain types of motorcycles and motorized bicycles. The restrictions are set to take effect on September 29, 2026.
US President Donald Trump also ordered Canadian-origin products worth 50 billion dollars to be removed from the US General Services Administration's multiple-award contract schedules. US Trade Representative Jamieson Greer said the measures were a response to what he described as Canada's continued discrimination against US exports.
7.5 billion dollar support package
Alongside the retaliatory tariffs, the Canadian government announced a 7.5 billion dollar package to support affected workers and businesses. It includes an additional 1.5 billion dollars for the Regional Tariff Response Initiative, 500 million dollars to provide liquidity to businesses, 2 billion dollars for the Canadian Economic Diversification Fund, and 3.5 billion dollars to support workers and employers.
The measures form part of Canada's efforts to reduce its dependence on the US market by supporting affected sectors, removing internal trade barriers between provinces and opening new international markets for exports.
Ottawa weighs next steps
Canadian Prime Minister Mark Carney said on September 10, 2026, that his government was still reviewing the US measures, describing them as relatively limited compared with previous steps. He stressed that retaliatory action remained an option when it served Canada's interests.
