Canada’s counter-tariffs on US goods take effect Tuesday

Canada's retaliatory tariffs on C$27.6 billion worth of American goods are set to take effect at 12:01 a.m. on Tuesday, September 8, after a weekend that saw no diplomatic movement to avert the latest escalation in the U.S.-Canada trade war. The counter-tariffs will apply rates of 15%, 25%, or 50% across sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, matching American duties "dollar for dollar," according to Canada's Department of Finance.dallasexpress+1

The measures represent Ottawa's direct response to 50% tariffs the Trump administration imposed on C$27.6 billion in Canadian goods starting August 22, after trade talks between the two countries collapsed on August 21.theglobeandmail+1

Talks Remain Frozen

No formal meetings between Canadian and American officials took place over the Labour Day weekend, and none were scheduled, according to The Globe and Mail. Canada-U.S. Trade Minister Dominic LeBlanc spent the holiday weekend in New Brunswick, while Canada's top trade negotiator, Janice Charette, had no contact with her American counterparts. Finance Minister François-Philippe Champagne confirmed the tariffs would proceed as planned.theglobeandmail

Prime Minister Mark Carney has not spoken with President Trump since trade talks ended in August. "When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions, we can have those discussions," Carney said on September 1.theglobeandmail

On Sunday, Trump called the exchange rate between the U.S. and Canadian dollars "unacceptable" in a post on Truth Social, while Treasury Secretary Scott Bessent compared Canada to a "yippy dog". The White House has pledged to retaliate if Canada proceeds, with officials considering bans on Canadian alcohol, dairy, and possibly steel imports as early as Wednesday, The Globe and Mail reported.benzinga+1

Economic Toll Mounts

The tariffs are expected to impose real costs on both sides of the border. Economist Trevor Tombe estimated that Canada's retaliatory tariffs alone could add roughly 0.25% to consumer prices. A broader analysis projects Canada could lose up to 90,000 jobs from the trade war. Canadian Manufacturers and Exporters warned that counter-tariffs will increase costs for businesses reliant on American inputs, particularly smaller manufacturers with limited ability to shift supply chains.youtube+1

Democratic Representative Haley Stevens told Bloomberg Television that Michigan, which exported $23 billion to Canada in 2025, is "paying the price in our pocketbooks." The tariff exchange is seen as disproportionately hurting states Trump relied on in 2024, fueling Republican concerns ahead of November's midterm elections.moneyweb

A Léger poll found 74% of Canadians support Carney's decision to impose retaliatory tariffs. Flavio Volpe, president of the Automotive Parts Manufacturers' Association of Canada, offered a more cautious view: "People in the Trump administration are willing to inflict damage on their own sectors and industries in pursuit of their objectives, however misguided that may be. I hope we can avoid a tit-for-tat scenario. We're running out of options".nytimes+1