Canadian counter-tariffs come into force as US trade dispute escalates

Canadian counter-tariffs come into force as US trade dispute escalates. ByNadine YousifSenior Canada reporterPublished8 September 2026, 05:39 BSTUpdated 2 hours agoPrime Minister Mark Carney has said that Canada's pivot away from the US as its largest trading partner "will come at a cost", as a wave of Canadian retaliatory tariffs on American goods come into force.

What happened

What tariffs will really cost Canadians and AmericansPublished5 hours agoThe US-Canada trade war in 5 chartsPublished31 AugustTrump threatens to stop sale of Canadian Bombardier jets in USPublished16 hours agoTrump took aim at Canada in a series of Truth Social posts over the weekend. CarsIf Trump's threat to raise tariffs on Canadian vehicles from 25% to 50% from 1 January 2027 becomes a reality, then that would deal a further blow to the automotive industry. "The move came amid an escalating trade war between the two neighbours, and hours before Canadian retaliatory tariffs were imposed on $20bn (£14.

"Trade talks between Canada and the US collapsed late last month after Canada walked away from the negotiating table, after which the US imposed new 50% tariffs on a range of Canadian goods. The move comes amid an escalating trade war between the two nations. About $20 billion of Canadian retaliatory tariffs are set to take effect Tuesday on U. "Trump's statement comes amid a bitter trade war between the U.

The wider picture

Trump had recently announced those 50% tariffs after a breakdown in trade talks. Commerce Secretary Howard Lutnick told CNBC's "Squawk Box" that the Canadians "blew up" a nearly complete trade deal with the U. " In return, Canadian Prime Minister Mark Carney said his nation would resume trade talks "when the Americans are ready. In a video address, Carney added that the counter-tariffs against the US "are necessary to protect our workers". "US trade representative Jamieson Greer meanwhile said that Washington would consider imposing tit-for-tat tariffs on Canada as early as Tuesday.

Canada's counter-tariffs, which range from 15% to 50%, will from Tuesday be applied to hundreds of items coming in from the US. Opinion polls suggest the majority of Canadians support, external their country imposing retaliatory tariffs on the US. Pushback from the fisheries industry was enough for Canada to alter its counter-tariffs by removing dozens of seafood items to avoid unintended consequences to its own economy.

What has been reported

But around 41,000 jobs were lost in August, a period that coincided with the new US tariffs on Canada and the collapse in trade talks. The share of US-bound Canadian exports dropped to 66% from an average of 75% before the trade war, according to July trade figures. Related topicsCanadaTrade warMark CarneyDonald TrumpTrump tariffs ByMichael RaceBusiness reporter, Reporting fromNew YorkPublished29 August 2026Updated 4 hours agoThe US and Canada have been locked in a bitter trade conflict since President Donald Trump launched his tariffs policy on his return to the White House.

The latest escalation has seen Canadian Prime Minister Mark Carney impose retaliatory import taxes on a host of US goods which came into force this week, after Trump threatened hikes of his own. "The recently threatened 50% tariffs on Canadian autos, trucks, and car parts would feed through to consumer prices more readily than before. Image source, Getty ImagesImage caption, Donald Trump and Mark Carney have both declared tariffs on each other's countryTrump says Canada wants 'benefits' of being US state after trade talks collapsePublished23 AugustCarney faces crucial test after walking away from Trump's dealPublished22 AugustHousehold items A key factor in this episode of the tariff war is the volume of household items that have been specifically targeted as opposed to raw materials.

AlcoholThere may not be a material impact on alcohol prices, but it's clear the trade war has had an impact on Canadians' choice of drink.

What happens next

Saunders says there's been a big push to "buy Canadian" from politicians and it has been successful when it comes to the strong stuff. Saskatchewan and Alberta are ​the only provinces that still sell ​American alcohol, but the former has announced its own 50% charge on US imported booze, set to kick in on 8 September, when the wider Canadian tariffs do. When it comes to US, consumers are unlikely to see much of a difference in terms of the cost of living as result of this latest battle with Canada, but frictions to trade can have longer-term economic impacts.

Despite the deal remaining operational, tariffs risk putting off talks in the near future, creating more uncertainty for cross-border trade. Related topicsCanadaDonald TrumpTrump tariffsMore on this storyThe US-Canada trade war in 5 chartsPublished31 AugustWhat tariffs has Trump introduced and why? The tariffs will apply to $20bn worth of American products, jeopardising the stability of the world's largest bilateral trading relationship. Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKey PointsPresident Donald Trump said Monday that Canadian aerospace company Bombardier can no longer sell in the U.

The report has been compiled by The Daily Waves using information reported across cnbc.com, bbc.co.uk. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.