US-Canada trade war deepens as Ottawa imposes new tariffs

Canada and the United States have entered a new phase of their escalating trade dispute, with Ottawa imposing retaliatory tariffs on a wide range of American goods as efforts to reach a new trade agreement remain stalled.

The Canadian measures took effect shortly after midnight on Tuesday, September 8, imposing tariffs of 15%, 25% and 50% on selected U.S. imports.

Reuters reported that the latest measures cover about US$20 billion worth of American goods, including steel, furniture, clothing and electronics.

Canadian government documents, meanwhile, put the value of the targeted imports at C$27.6 billion.

Some of the products facing the highest tariffs include steel and aluminum, clothing and apparel, as well as a range of consumer and industrial goods.

Other products, including dairy, fish and seafood, face tariffs of up to 25%. Canada

The measures are Canada’s response to new U.S. tariffs imposed on Canadian products.

Washington introduced a 50% tariff on about US$20 billion of Canadian goods in August, prompting Prime Minister Mark Carney's government to announce matching countermeasures.

The latest escalation follows the breakdown of trade negotiations between Ottawa and Washington last month.

Canadian officials have said they remain willing to negotiate, but Prime Minister Carney has demanded greater certainty that any agreement reached would provide stable tariff rates rather than leave Canada vulnerable to unilateral changes by Washington.

U.S. officials have defended their approach and blamed Canada for the failure to reach a deal.

The Trump administration has also threatened additional tariffs on Canadian products, including automobiles, increasing concerns about the future of the countries' deeply integrated economies.

The dispute is particularly significant because Canada and the United States maintain one of the world’s largest bilateral trading relationships.

U.S. government data estimates that trade in goods and services between the two countries totalled about US$872.3 billion in 2025.

U.S. goods exports to Canada were worth US$333.6 billion, while imports from Canada reached US$381.9 billion.

For Canada, the economic stakes are especially high because the United States is its dominant export market.

Reuters reports that about 68% of Canadian exports are destined for the U.S., making prolonged tariff confrontation particularly risky for Canadian manufacturers, farmers and other exporters.

The consequences are already being felt by businesses and consumers.

Higher tariffs can raise the cost of imported goods, disrupt supply chains and force companies to reconsider where they source products.

Despite the escalating rhetoric, the world’s largest bilateral trading relationship faces another period of uncertainty.