OTTAWA, ONTARIO / RankWire.AI / – Canada will introduce tariffs of 15%, 25% and 50% on C$27.6 billion worth of U.S. imports beginning September 8. Covering more than 700 tariff items, these measures are designed to mirror U.S. duties exactly. Prime Minister Mark Carney announced the implementation date following the enforcement of new U.S. tariffs on August 22. Canada stated that each selected product will carry the same rate as the corresponding U.S. action.
In response, the U.S. imposed 50% tariffs on C$27.6 billion of Canadian goods. Following Canada’s rejection of new terms proposed by Washington, bilateral trade negotiations were suspended. Ottawa then prepared retaliatory measures affecting goods across several key sectors. The U.S. tariffs rely on Section 338 of the Tariff Act of 1930 and separate authorities under Section 232. Canadian counter-tariffs on U.S. automobiles will continue to be in effect alongside the new tariffs.
The 50% tariff tier in Canada includes steel and aluminum products, which previously faced a 25% counter tariff. It also encompasses furniture, clothing, and apparel. The 25% rate applies to appliances, dairy products such as cheese, and certain steel and aluminum derivative items. Additional targeted sectors include agricultural equipment, pulp and paper products, and electronics. Canada explained that the expanded list emphasizes sectors already impacted by U.S. tariffs.
Tariffs impact major goods industries
Alongside these measures, the federal government unveiled C$7.5 billion in new and expanded support programs for affected workers and businesses. Included in this package is C$1.5 billion allocated for the Regional Tariff Response Initiative, along with C$500 million in liquidity through the Business Development Bank of Canada’s Pivot to Grow program. Ottawa also set aside C$2 billion for the Canada Strong Diversification Fund. The government has expanded access to existing tariff relief programs by lowering the minimum revenue threshold to C$1 million.
A dedicated C$3.5 billion fund has been established for rapid response initiatives assisting workers and employers. These include temporary flexibilities in Employment Insurance, workplace training, and a new program focused on worker retention and retraining. Finance Minister François-Philippe Champagne emphasized that the counter tariffs will match U.S. measures dollar for dollar and rate for rate. The government highlighted that the new support package complements nearly C$25 billion in aid provided since the start of U.S. tariffs.
Effective September 8, new duties will be enforced
The tariffs will only be applicable to goods classified as U.S. origin according to Canada’s country of origin rules. Goods already in transit when the tariffs take effect will be exempt. These duties will commence at 12:01 a.m. on September 8. The Canada Border Services Agency will oversee the collection of the new tariffs at border crossings. Canada’s tariff remission framework remains available for requests seeking exceptional relief.
The extended product list broadens the scope of the trade dispute beyond metals and automobiles into household and industrial commodities. It includes dairy, seafood, machinery, apparel, furniture, appliances, and electronics. Tariff rates will vary between 15%, 25%, and 50% depending on the product. The measures cover imports ranging from industrial inputs to finished consumer goods. These tariffs, effective September 8, will operate alongside existing counter tariffs that Ottawa maintains on U.S. automobiles.