Canada's retaliatory tariffs on a broad range of American goods took effect on Tuesday, targeting nearly C$28 billion (about $20 billion) worth of US products at rates of up to 50%, as both sides remained deadlocked with no clear path to resuming trade negotiations.
The counter-tariffs, described by Prime Minister Mark Carney as "dollar-for-dollar" measures, cover hundreds of items from steel and furniture to cotton T-shirts. According to BBC, fresh fish and lobster were initially on the list but were later dropped after Canada's seafood industry pushed back, highlighting how difficult it is for Ottawa to retaliate without hurting its own producers.
The lobster trade is heavily intertwined between the two countries, with American-caught lobster frequently sent to Canada for processing before being exported back to the US.
Where Talks Stand
Speaking to reporters last week, Carney said Canada wants a trade agreement with the US that is "durable" and works for both nations. "We're ready to sit down and strike that deal when the Americans are ready," he said.
US Trade Representative Jamieson Greer took a different view. In an interview with Fox News, he said talks broke down because Canada walked away from what Washington considered a fair offer. "We offered them the best deal, they looked at it square in the face and turned around," Greer said. He also warned in a separate interview with Canadian broadcaster CBC that further Canadian retaliation could prompt the US to ban imports of certain Canadian goods altogether.
President Donald Trump added pressure over the weekend through a series of posts on Truth Social, including one that called Canada's exchange rate with the US "unacceptable" and another showing a map of North America with Canada, Mexico and Greenland overlaid with the American flag. Trump also threatened to cut all US business with Canadian aircraft manufacturer Bombardier unless it moved production to the US. Bombardier contributed over C$7 billion to Canada's GDP in 2024, according to a report commissioned by the company and prepared by accounting firm PwC.
Economic Impact
Canada and the US share what is considered the world's largest bilateral trading relationship, valued at close to $900 billion in 2025. The US already has a 25% tariff on Canadian cars and trucks, plus levies on steel, aluminium and lumber. In late August, Trump added 50% tariffs on goods such as dairy, alcohol, hockey sticks and perfume.
Canada's latest counter-tariffs build on existing retaliatory measures already applied to American vehicles that fall outside the terms of the USMCA trade agreement.
Economists cautioned that the new levies will translate into higher prices for ordinary Canadians on goods like food and clothing. The Canadian Chamber of Commerce urged the government to be precise in its approach. "Businesses understand retaliation but don't want to see endless escalation," said Chamber CEO and President Candace Laing, though she added that companies "are preparing for this trade dispute to last."
Canada's economy grew 3.3% in the second quarter and added 181,000 jobs between April and July. However, around 41,000 jobs were lost in August, coinciding with the new US tariffs and the collapse of negotiations. Carney has since pledged to reduce Canada's dependence on US trade, and July data showed the share of Canadian exports heading to the US fell to 66%, down from a pre-trade-war average of 75%.
Legit.ng earlier reported that Canada has called on trained health care and social service professionals from around the world to consider relocating to the country, citing ongoing shortages in its health care system. The Canadian government said it is specifically looking for nurse practitioners, dentists, pharmacists, psychologists and social workers to help fill critical gaps and continue delivering essential services to Canadians.
