Canada to Hit Back With Dollar-for-Dollar Tariffs on US Goods From September 8 (2026-08-23)
Canada will impose matching tariffs on US products starting September 8, responding to new US duties on $20 billion of Canadian exports.
Prime Minister Mark Carney announced on Saturday that Canada will impose retaliatory tariffs on a range of US products, including steel, electronics, and dairy, starting September 8. The move comes in direct response to new US tariffs that took effect at midnight, covering approximately $20 billion of Canadian exports.
Carney stated that Canada will match Washington's duties dollar for dollar to protect Canadian workers and businesses. "You're at war when you get attacked. We got attacked," he said, addressing questions about the escalating trade dispute.
The announcement follows failed negotiations between the two countries, with talks breaking down late Friday. Carney cited last-minute US demands as the reason for the collapse, saying the proposed terms were "uneconomic, unfair, and undermined the net benefits to Canada."
The new US tariffs affect sectors including wine, furniture, dairy, cement, clothing, and hockey equipment. Canada's response will target US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, with details to be released in the coming days.
A key sticking point in negotiations was the treatment of larger vehicles. Canada sought favorable terms for medium- and heavy-duty trucks, but the US resisted, which Carney said would have hurt Canadian production of models like Ford's F-Series trucks and GM's Silverado.
Carney also mentioned US proposals that touched on Canadian culture, language, and sovereignty, without providing specifics. He pledged support measures for affected industries next week, which could last for years.
US Trade Representative Jamieson Greer said no new talks are planned, and the US will respond to Canadian retaliation. Ontario Premier Doug Ford backed Carney's decision, calling the rejected deal bad for the province's auto, steel, and manufacturing sectors.
Trade experts warn the new US tariffs could severely damage vulnerable industries like softwood lumber and wine, potentially leading to job losses and business closures. Opposition leader Pierre Poilievre urged Canadians to stand united against what he called "unfair attacks" on jobs and businesses.