Canada imposes up to 50% tariffs on $27.6 billion of U.S. imports

Canada's new retaliatory tariffs on a broad range of U.S. goods took effect on Tuesday following the breakdown of trade negotiations last month. The duties, which vary between 15% and 50%, cover products worth about $27.6 billion, including dairy, agricultural equipment, paper, household appliances and electronics. Tariffs on U.S. steel, aluminum and iron were raised to the maximum 50%, while items such as furniture, motorbikes, clothing and certain beauty products also face the highest rates.

"This is a dollar for dollar response to U.S. levies on Canadian goods," the Canadian Department of Finance said, adding that the measures aim to protect Canadian workers, producers and manufacturers by improving their ability to compete with U.S. imports.

Existing Canadian counter-tariffs, such as the 25% duty on automobiles, remain unchanged. Trade talks between the two allies collapsed at the end of August, with officials on both sides blaming each other for the impasse.

The United States exported $333.6 billion to Canada and imported $381.9 billion, with both economies deeply linked across sectors like energy, vehicles, machinery, aircraft, pharmaceuticals and consumer goods. Economists note that although the affected products represent a modest share of total trade, the tariffs could significantly impact small and medium-sized businesses in the most heavily targeted industries.

In response, Ottawa announced a $7.5 billion support package for affected businesses and workers, building on a prior $25 billion aid program launched after the U.S. introduced its own global tariff measures earlier this year.