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Canada Is Retaliating with Tariffs on Specific U.S. Goods. Here’s What It Covers
Ottawa said the duties target U.S. sectors hit by Trump tariffs, with 50 per cent levies on dairy, steel and aluminum products.
On Tuesday, Canada announced new retaliatory tariffs on American goods, escalating trade tensions with the United States over steel, aluminum, and dairy products.
Tensions escalated after President Donald Trump imposed tariffs on Canadian steel and aluminum in March 2025, then raised steel rates to 50 per cent in June. Canada responded with 25 per cent levies on American metal products.
Ottawa is applying 50 per cent tariffs on American steel and aluminum, with dairy imports exceeding quotas facing rates up to 200 per cent. The Finance Department confirmed new 50 per cent levies apply to imports both below and above quota thresholds.
On Aug. 26, Ottawa reversed course and removed planned tariffs on a wide range of American products, citing feedback from the fishing and processing sectors. The reversal demonstrates the government's willingness to adjust its retaliatory strategy.
President Trump posted a threat on Truth Social on Monday to raise tariffs to 50 per cent on Canadian steel, aluminum, and vehicles as of Jan. 1, 2027. The escalation signals further uncertainty in the bilateral trade relationship.