Canada imposes counter-tariffs on US goods: measures cover nearly C$28bn, up to 50%

Canada put retaliatory tariffs on a range of US goods into effect on Tuesday, covering nearly C$28bn of American products. Rates run from 15% to 50% and apply to hundreds of items, including steel, furniture, clothing and some foodstuffs.

At the top rate of 50% are items such as American milk, golf clubs, steel, aluminium and certain garments like jackets and T-shirts. Cheese, toilet paper and household appliances such as air conditioners face 25% tariffs, while forklift trucks and industrial moulds are hit with 15% levies.

Fresh fish and lobster were initially listed but were removed after pushback from Canada’s seafood industry, which cited integrated cross-border supply chains that could harm the Canadian economy.

Talks to resolve the dispute have not resumed since negotiations collapsed in late August. Prime Minister Mark Carney told reporters Canada is ready to sit down and pursue a “durable” deal when the Americans are ready.

U.S. trade representative Jamieson Greer said the ball is in Canada’s court and complained of sparse communication since the talks broke down, warning the U.S. might retaliate by banning some Canadian imports.

The new Canadian levies are on top of existing U.S. tariffs: Washington already imposes a 25% tax on Canadian cars and trucks and duties on steel, aluminium and lumber, and in late August it added 50% tariffs on other goods including dairy, alcohol, hockey sticks and perfume.

Businesses on both sides are preparing for the fallout. The Canadian Chamber of Commerce urged a targeted approach, warning against endless escalation, while economists say higher tariffs will raise consumer prices for everyday goods.

Bilateral trade remains large — nearly $900bn in 2025 — and the Canadian government has said it seeks to diversify trade away from the US.