Just days after trade talks between Canada and the US collapsed, Ottawa answered back yesterday with retaliatory tariffs. Canada announced, effective September 8, that it will apply 15%, 25% and 50% counter-tariffs on more than 700 US products, a dollar-for-dollar response to the 50% US duties that took effect last Saturday.

• A sweeping, mirrored list. The 50% tier covers steel, aluminum, dairy, apparel, furniture and electronics such as smartphones. It also reaches everyday items such as perfume, tableware and golf clubs, while appliances, fish, cheese and farm equipment sit at 15% to 25%. Tariffs are paid by importers and often passed on, so this can touch prices Canadians see at the till, not just industrial inputs.
• Sized to reflect Washington’s tariffs. The countermeasures cover about C$27.6 billion (US$19.9 billion) of annual US imports, roughly matching the US$20 billion of Canadian goods hit by Washington’s tariffs, which used a never-before-used provision of the 1930 Tariff Act rather than the usual trade tools, a sign of how unconventional this trade dispute has become.
• A sharp reversal. A year ago, Prime Minister Mark Carney lifted many retaliatory tariffs and made concessions, including on digital policy, to try to reach a deal. Now he says it became clear US officials were “aiming to destroy key Canadian industries such as steel, aluminum and auto manufacturing.”
• Support alongside the conflict. Ottawa is pairing the counter-tariffs with a C$7.5 billion aid package, loans, grants and employment insurance changes, and says tariff relief for affected companies will continue.

The retaliation by Canada shows how fast the dispute has moved, from a “done deal” to matching tariffs within a week, with no path back to talks yet in sight. Beyond exporters, broad-based counter-tariffs can filter into everyday prices, adding another variable for the Bank of Canada as it weighs economic growth against inflation. Expect continued volatility in trade-exposed sectors like autos, steel and agriculture, and pressure on the Canadian dollar, through September and beyond.

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