Canada plans to match US tariffs

Written by Laura Miller & Stephanie Ritenbaugh

Canada has moved to impose new tariffs on US goods, matching tariffs the US has imposed on it.

The move follows the trade talks between the US and Canada that fell apart last week. Canada said it suspended negotiations rather than accept a bad deal. The failed talks will lead to new US tariffs of 50% on nearly CA$28 billion of Canadian goods.

As a result, the Department of Finance Canada confirmed on Tuesday “that Canada will match the new US tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods.”

Effective Sept. 8, Canada will impose equal counter-tariffs on US products targeted by US Section 232 and Section 338 tariffs. That includes 50% tariffs on steel and aluminum.

In addition to aluminum products, the countermeasures are meant to support the steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics industries.

Increasing animosity

Canadian aluminum exports to the US have continued to drop since the tariff rate increased to 25% in March 2025, with a growing share shipping off to Europe and Mexico. The tariff rate has since spiked to 50%. Though in July, the White House said it would cut aluminum tariffs in half for companies that plan to expand primary aluminum production in the US by January 2029.

It’s quite a change from when our neighbors to the north provided the US with about 70% of its unwrought aluminum. As relations between the long-standing allies have soured, Canada has looked elsewhere for business. At the same time, supply disruptions tied to the conflict in Iran have created openings for Canadian metal in markets that previously relied on Middle Eastern suppliers.

Now, most aluminum imports face a 50% tariff under Section 232.

Before the 2025 tariff increases, the US share of Canadian exports was a staggering 97%. Now it’s about 57% on a customs unadjusted basis.