Canada Unveils Dollar-for-Dollar Tariffs on US Goods as Trade War Deepens

Canada has announced a sweeping set of countertariffs on American products, responding in kind to the latest US import taxes that have intensified the trade dispute between the two neighbors. The Canadian government released a list of more than 700 US goods that will face steeper duties starting September 8, with rates set at 15%, 25%, or 50%—designed to mirror the tariffs Washington has imposed on Canadian exports.

The retaliation targets a wide range of items, including live and frozen fish, cheese, honey, cosmetics, carpets, toilet paper, clothing, steel and aluminum products, household appliances, smartphones, motorcycles, and fishing equipment. Ottawa says it is focusing on goods most affected by US tariffs, which include both the latest 50% duties on roughly $20 billion of Canadian products and earlier sectoral tariffs on steel and aluminum.

The move comes just days after the Trump administration's 50% tariffs on Canadian goods—ranging from honey to hockey sticks—took effect. Those duties were justified under a rarely used 1930 law, with Washington claiming Canada discriminated against US businesses in sectors like autos, alcohol, and dairy. The US has also listed over 550 Canadian products subject to the new 50% rate.

Further escalation looms. President Trump has threatened to raise tariffs on Canadian cars, trucks, and steel to 50% starting in 2027, a move Canadian Prime Minister Mark Carney said would "gradually dismantle" Canadian production. Trump has also floated renaming Lake Ontario as "Lake America," while Ontario Premier Doug Ford has warned of cutting off electricity and critical minerals to the US if the conflict worsens.

Businesses and households on both sides of the border are bracing for higher prices as the trade war shows no sign of cooling.