Ottawa: Canada has fired back at the United States in the escalating trade war, announcing retaliatory tariffs on around 700 US products worth C$27.6 billion (about US$20 billion). The new duties, ranging from 15% to 50%, will take effect on September 8.

The measures, announced by Prime Minister Mark Carney’s government, are designed to match the latest US tariffs dollar for dollar. Targeted sectors include steel, dairy, appliances, agricultural equipment, pulp and paper, electronics and other industrial goods.

Carney said Canada was responding to what Ottawa considers unjustified US trade measures while protecting Canadian workers and businesses. Alongside the tariffs, his government announced a C$7.5 billion package of new and enhanced support for workers and businesses hit by the trade dispute.

Ottawa Draws a Line

The retaliation follows the collapse of US-Canada trade negotiations and Washington’s decision to impose 50% tariffs on roughly C$27.6 billion of Canadian goods, effective August 22. Carney had rejected the latest US proposals as unfair and economically damaging, saying Canada would not accept a deal that undermined its key industries.

Canada’s Finance Minister François-Philippe Champagne described the situation as an “unprecedented challenge” and said Ottawa was standing up for Canadian workers, businesses and industries.

Canada Claps Back At US Tariffs With Countermeasures

Ottawa will impose a sweeping tariff response to the latest US move, promising a roughly “dollar for dollar” retaliation, PM Carney has announced.

The measures will cover $19.9bn in US imports and target industries… pic.twitter.com/A5DPBT81FD

— RT_India (@RT_India_news) August 26, 2026

The government has stressed that its latest response is targeted rather than a blanket tariff on all US imports. Existing Canadian counter-tariffs on sectors such as automobiles remain in place.

Trump Warns Canada

US President Donald Trump has continued to escalate the rhetoric, warning Canadian leaders to “fall in line” and threatening further measures, including possible additional tariffs on the Canadian automobile sector.

Trump has also accused Canada of unfairly benefiting from trade with the US and criticised Canadian tariffs on American agricultural products.

With Washington and Ottawa now imposing matching tariffs, the dispute threatens to put further pressure on a deeply integrated North American trading relationship. The two countries conduct hundreds of billions of dollars in annual trade, making a prolonged tariff battle potentially costly for businesses and consumers on both sides of the border.