Canada Hits US Goods With New Tariffs as Trade War Escalates.

Canada Hits US Goods With New Tariffs as Trade War Escalates.

Canada has hit a wide range of American products with new tariffs, escalating its trade confrontation with the United States after negotiations between the two countries broke down.

The retaliatory measures took effect at 12:01 a.m. on Tuesday, September 8, imposing duties of 15%, 25% and 50% on selected goods imported from the US.

The tariffs cover about C$27.6 billion (US$20 billion) worth of American imports and target roughly 700 products. They include goods from sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, aluminium and electronics.

Canada says the measures are a dollar-for-dollar response to tariffs imposed by US President Donald Trump on Canadian products.

The latest US tariffs, which came into effect in August, placed 50% duties on about US$20 billion of Canadian goods after trade talks between Washington and Ottawa collapsed. Canada subsequently announced its countermeasures, setting September 8 as the start date.

Canadian Prime Minister Mark Carney has defended the response, arguing that Ottawa cannot accept trade terms that threaten Canadian industries or limit the country's ability to pursue its own economic interests.

For businesses on both sides of the border, however, the escalating tariffs mean higher costs and greater uncertainty. The US and Canada have deeply integrated supply chains, particularly in manufacturing, agriculture and energy, meaning tariffs imposed on goods moving in either direction can ripple through companies and eventually reach consumers.

The latest measures also deepen a trade dispute that has already strained relations between two countries that have traditionally maintained one of the world's closest economic partnerships.

There are currently no active trade negotiations between Washington and Ottawa, although Canadian officials have said communication channels remain open. Trump has also threatened further action against Canadian industries, including the country's aerospace sector.

Canada's new tariffs do not apply to US goods that were already in transit when the measures came into force.

The latest escalation leaves North America's two largest trading partners facing a more uncertain economic relationship, with no immediate sign that the tariff battle is nearing an end.