A truck crosses the Gordie Howe International Bridge between Windsor, Ontario, and Detroit, Michigan into the United States on September 6, 2025.
Jeff Kowalski | AFP | Getty Images
Canada’s retaliatory tariffs on U.S. goods went into effect Tuesday after trade talks collapsed last month as relations between the U.S. government and Ottawa continue to deteriorate.
Tariffs range from 15% to 50% on $27.6 billion worth of U.S. products, including dairy products, agricultural machinery, paper, home appliances, and electronics. Canada’s tariffs on U.S. steel, aluminum and iron products have doubled to 50%, with furniture and clothing also subject to the highest tax rate.
Canada billed the move as a “dollar-for-dollar” response to U.S. taxes on its products, which are subject to Section 338 of the tariff. The Treasury Department said it will protect Canadian workers, producers and manufacturers by making them more competitive with U.S. products sold in the domestic market.
Canada’s existing counter-tariffs against the United States, including a 25% tariff on the politically sensitive auto sector, will remain in place.
Trade negotiations between the two longtime allies broke down in late August, with officials on both sides blaming each other for failing to reach an agreement and publicly disagreeing over which areas a compromise could not be reached.
US President Donald Trump on Monday called for a boycott of Canadian aircraft maker Bombardier, posting on Truth Social: “Stop selling Bombardier in the US!”
The United States exported $333.6 billion worth of goods to Canada and imported $381.9 billion from its northern neighbor. The two companies trade in many of the same sectors, including energy, vehicles, heavy equipment, aircraft, pharmaceuticals, gems and jewelry, furniture, clothing, and numerous food and beverage products.
Economists say that although the affected goods represent a relatively small share of overall trade, small and medium-sized enterprises and businesses in the most affected sectors face a severe blow.
Last month, Ottawa announced a $7.5 billion aid package for businesses and workers, extending an existing $25 billion package in response to the U.S. global tariff offensive that began in April 2025.
