Canada's New Tariffs Target Key U.S. Imports

Canada will impose counter-tariffs on U.S. goods starting September 8, affecting sensitive sectors from metallurgy to kitchen appliances and food. In some niches, Canada absorbs over half, sometimes 75%, of U.S. exports, making it hard to quickly replace the Ottawa market. The tariffs range from 15% to 50% on $27.6 billion worth of goods, including cars, motorcycles, dairy, appliances, and agricultural equipment. This follows U.S. 50% tariffs on Canadian beer and cheese imposed August 22, after weeks of failed trade negotiations. The U.S. steel and aluminum sector faces the highest impact, with tariffs rising from 25% to 50%. The trade duel also hurts Canadian companies, as Ottawa had to tax goods it critically depends on, like locomotives, where U.S. supplies cover 98% of Canadian imports. Professor Trevor Tombe of the University of Calgary notes that matching Washington "dollar for dollar" forced inclusion of industrial raw materials and components.