Canada will impose counter tariffs on nearly $20 billion of US imports, including raising duties to 50% on US steel and aluminum products, following failed trade negotiations between the two countries, the Department of Finance Canada said Aug. 25.
The US imposed 50% tariffs on a range of Canadian imports on Aug. 22 after trade talks collapsed and negotiators failed to reach an agreement. US President Donald Trump announced in July that the US would impose the duties in response to Canadian trade policies.
Canadian counter tariffs will take effect Sept. 8 and range from 15% to 50% on certain US imports as part of Canada's efforts to protect workers and manufacturers harmed by US tariffs, the Department of Finance Canada said in a statement. The rate for each product will match the corresponding US tariff rate.
The counter tariffs focus on sectors including metals, dairy, appliances, agricultural equipment, pulp and paper and electronics. Steel and aluminum imports that will now face 50% duties were previously subject to a 25% Canadian counter tariff.
The list of targeted imports did not include any energy products such as electricity, LNG or oil.
Canada also introduced a $5.4 billion package of new measures to support Canadian workers and businesses.
“When the United States asked too much and offered too little, we chose to stand up for Canadians," François-Philippe Champagne, Canada's minister of finance and national revenue, said in a statement. "Our dollar-for-dollar, rate-for-rate counter tariffs, as well as a multibillion-dollar support package, will protect workers, farmers, families and businesses as we build a stronger, more resilient and more diversified Canadian economy."
Trump on Aug. 24 threatened additional tariffs on Canada and said the country will face 50% tariffs on all cars and trucks, automotive parts and steel starting Jan. 1, 2027. The action would double tariffs on cars and create a fresh 50% tariff on auto parts, but Canadian producers already pay a 50% tariff on most steel products.
The US exported $9.9 billion in iron and steel products to Canada in 2025, according to S&P Global Market Intelligence Global Trade Analytics Suite data. The US imported $8.9 billion of iron and steel products from Canada that same year.
Canada is heavily dependent on the US market, with most Canadian exports heading south of the border. In 2025, Canada exported around $401 billion in goods to the US, accounting for 71.6% of its total exports, according to Statistics Canada.
The White House did not immediately respond to a request for comment on Aug. 25.
