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Canada hits US goods with tariffs of up to 50 per cent as trade war escalates

Ottawa targets about US$20 billion in US products and unveils billions in assistance after negotiations with Washington collapse

4-MIN READ4-MIN ListenTeresa Elena Frontadoin WashingtonPublished: 2:29am, 26 Aug 2026Canada announced retaliatory tariffs of up to 50 per cent on US$19.94 billion (C$27.6 billion) of American goods on Tuesday, escalating its trade confrontation with Washington days after negotiations collapsed and the Trump administration imposed sweeping new duties on Canadian products.The tariffs, which take effect on September 8, will apply to more than 700 categories of US goods at rates of 15, 25 or 50 per cent, according to the Canadian government.

The targeted products range from steel, aluminium and agricultural equipment to household appliances, clothing, cheese, seafood, cosmetics and electronics.

Existing Canadian tariffs on some US steel and aluminium products will double from 25 to 50 per cent, matching the rates imposed by Washington. Counter-tariffs on American-made vehicles will remain at 25 per cent.

Canadian Finance Minister Francois-Philippe Champagne said the measures would match the US tariffs “dollar for dollar, rate for rate” and were intended to defend Canadian workers and businesses rather than generate government revenue.

“We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” Champagne said.

Read original at South China Morning Post

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