Canada has imposed retaliatory tariffs of 15% to 50% on approximately USD 28 billion of US goods after trade negotiations with Washington stalled, escalating an 18-month dispute and raising fresh uncertainty over the future of the USMCA.
Canada has enacted retaliatory tariffs today, 8 September 2026, just after midnight, covering nearly USD 28 billion in US goods.
Prime Minister Mark Carney authorised the measures after negotiations between Ottawa and Washington stalled in the preceding month. The counter-tariffs impose duties ranging from 15% to 50% across products including steel, furniture, clothing, and electronics—a direct response to US President Donald Trump’s USD 20 billion tariff package imposed the previous month against Canadian exports.
However, Canada’s Department of Finance removed seafood and fish products from its counter-tariff list on 26 August 2026, following industry concerns that the measures could cause significant economic harm.
The escalation marks the intensification of an 18-month trade dispute between the neighbouring countries. Trump’s tariffs specifically targeted Canadian wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment.
The two governments have blamed each other for the collapse of negotiations that appeared close to resolution two weeks prior to the tariff deployment.
USMCA’s uncertain future complicates prospects for resolution
The trade dispute threatens the US-Mexico-Canada Agreement, which faces an annual review following Trump’s decision to decline a decade-long extension.
The new tariffs operate under Depression-era US legislation that prevents Ottawa from invoking USMCA exemptions. Approximately 68% of Canadian exports flow to the US annually, with roughly 80% of that amount previously moving duty-free under the agreement’s protections.
Trump has also signalled plans to impose 50% tariffs on Canadian automobiles, trucks, and automotive parts effective 1 January 2027.
