Canada announced Tuesday sweeping counter-tariffs on hundreds of American goods, matching the United States’ 50% tariffs on C$27.6 billion of Canadian goods, dollar for dollar, while keeping existing auto tariffs in place.
Driving the news: Starting Sept. 8, Canada will apply counter-tariffs of 15%, 25%, and 50% on products targeted by the U.S. Section 338 and Section 232 tariffs, with each product's rate matching the corresponding U.S. rate.
For context: Trade talks between the U.S. and Canada crumbled last week, driven largely by a last-minute spat about tariff relief for medium- and heavy-duty vehicles.
The U.S. had reportedly offered to cut its auto tariff from 25% to 15%, but excluded larger pickups and medium- and heavy-duty vehicles.
What it affects: The new list targets a range, including clothing, seafood steel, pulp and paper, and electronics.
Regarding autos, Canada will keep its 25% counter-tariff on non-CUSMA-compliant U.S. vehicles that has been in place since April 2025, while some rates for materials and other modes of transportation changed.
Steel: 25% → 50% (new)
Aluminum: 25% → 50% (new)
Non-CUSMA-compliant U.S. vehicles: 25% (unchanged, in effect since April 2025)
Motorcycles over 800cc: 50% (new)
Trailers and semi-trailers: 25% (new)
Rail locomotives, railcars, and maintenance vehicles: 25% (new)
While Canada's new tariffs largely leave passenger and commercial vehicles untouched, the U.S.'s Section 338 action, the tariffs that triggered this response, includes a proclamation specifically framed around Canada's auto-tariff policy, but the proclamation excludes actual vehicles from its duties, since those are already covered by the existing Section 232 auto tariffs.
Instead, that proclamation's 50% duty falls on other Canadian goods, used as leverage in the vehicle dispute.
Not a red herring: Between the steel beams and aluminum coils, Canada's retaliation list runs the gamut, including fish.
Trousers, honey, sewing needles, video game consoles, golf clubs, and fishing rods, are among the goods now facing a 50% tariff.
Dozens of fish species face 25% tariffs, including salmon, halibut, cod, sardines, mackerel, tuna, and herring, plus lobster, crab, and shrimp.
Beyond the dairy, alcohol, and motor-vehicle categories, the American tariffs included wine, cement, plywood, furniture, clothing, seeds, fishing rods, swimming pools, wigs, and, hockey sticks.
What they're saying: UAW President Shawn Fain issued a statement on behalf of the union that pushed back on any further escalation targeting Canada.
"The UAW rejects any escalation on Canada, a country with strong unions and labor standards," the union said in a statement. "If we're going to increase tariffs anywhere, it should be on countries where automakers continue to offshore jobs because they can pay workers $3 an hour, force them to work in unsafe conditions, and crack down on independent unions."
The union said it continues to support "strategic tariffs, including the 232 tariffs on auto and heavy truck," but called for "a comprehensive rewrite of the USMCA and other bad trade deals" rather than further escalation with Canada.
Bottom line: Canada paired the tariffs with a $7.5 billion support package for workers and businesses. Finance Minister François-Philippe Champagne said in a statement that Canada chose to "stand up for Canadians."
"Our dollar-for-dollar, rate-for-rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy," Champagne said.
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