The new duties took effect at 12:01 am on Tuesday, September 8, covering 629 tariff classifications and imports worth around C$27.6 billion (US$20 billion) a year. The tariffs range from 15 per cent to 50 per cent and cover products including steel, furniture, clothing and electronics. Ottawa had initially proposed duties on 874 classifications but later removed 254 fish and seafood categories and added nine other items.
Canadian Prime Minister Mark Carney urged businesses and consumers to reduce their dependence on the United States, the country’s biggest trading partner.
“We have everything we need to pivot and prosper,” Carney said in a video message after the tariffs came into force. He acknowledged that shifting trade patterns would come with a cost but said the alternative of doing nothing would be more damaging.
“That pivot will come at a cost. There’s always a cost to action. But it doesn’t come close to the cost of standing still,” the Canadian PM added.
Canadian officials said the counter-tariffs were designed to put economic and political pressure on Washington, with some of the measures expected to affect industries in US states such as Michigan and Ohio.
The Canadian measures follow US tariffs imposed last month on around $20 billion worth of Canadian goods. Those duties have affected products including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.
The escalating dispute has raised concerns over the future of the US-Mexico-Canada Agreement (USMCA), which has supported trade between the three North American economies for decades.
Canada sends nearly 68 per cent of its exports to the US, according to Canadian and US government data, although around 80 per cent of those exports have moved duty-free this year under USMCA exemptions.
US President Donald Trump has continued to target Canada on social media as the latest tariffs took effect.
On Tuesday, Trump said Canadian aircraft maker Bombardier would not be able to sell planes in the US unless it began manufacturing them there, although he did not announce a formal order.
He has also threatened to raise US tariffs on Canadian cars, trucks and automotive parts to 50 per cent from January 1.
The latest escalation comes despite continued contacts between officials from both countries. Canadian officials said discussions are continuing, although there are currently no formal trade negotiations.
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