Canada, in retaliation for earlier U.S. tariffs after trade talks broke down last month, enacted a range of tariffs on $27 billion of goods imported from the U.S. effective Tuesday.
According to the Office of the United States Trade Representative, Canada is consistently one of the U.S.'s top two trading partners and the two countries share an integrated supply chain, most notably in energy, automotive and textiles. In 2024, it was the top destination for U.S. exports, with leading categories being vehicles, machinery and agricultural products.
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Canadian tariffs are the latest move in an increasingly hot trade war between the two countries, fueled by failed negotiations to renew the U.S.-Canada-Mexico trade agreement and President Donald Trump referring to Canada as the 51st state.
The Sept. 8 Canadian tariffs will impose a tax from 15-50% on a variety of goods, focusing on steel, dairy, appliances, agricultural equipment, pulp and paper products, electronics and automotive goods.
Some of the categories included are:
- A variety of raw or semi-finished iron, non-alloy or stainless steel steel materials and products; various flat-rolled products of iron, non-alloy steel or stainless steel; and other iron, non-alloy steel or stainless steel products.
- Wire made from iron, non-alloy steel, stainless steel, copper or aluminum.
- Chain and parts of chains made from iron or steel.
- Springs made from iron or steel, leaf springs or helical springs.
- Articles of iron or steel for use in the manufacture of fire fighting vehicles.
- Reusable iron or steel containers specially designed to be used for transporting motor vehicle components free of customs duties when presented with the goods therein.
- Aluminum bars rods and profiles, whether alloyed or not and aluminum plates, pipes, tubes and structures.
- Files, rasps, pliers, pincers, tweezers, metal cutting shears, pipe-cutters, bolt croppers, punches and other hand tools such as blow lamps, vices, clamps, grinding wheels, tacking guns or stapling guns, precision clamps and other clamps or vices.
- Tools for working in the hand that are pneumatic, hydraulic or with a self-contained electric and non-electric motor, including saws, chain saws and more.
- Turbochargers and superchargers for use in motor vehicles.
- Truck heaters and air conditioners.
- Combined refrigerator-freezers for recreational vehicles.
- Jacks and hoists used to raise vehicles.
- Different types of molds for metal carbines, glass, mineral materials, rubber or plastics.
- Trailers and semi-trailers that are aluminum drop-center livestock trailers of a certain size; farm, logging or freight wagons and trailers for some logging trucks; for road tractors or for motor vehicles for the transport of goods.
Trump, in an escalating war of words and tariffs, has threatened a 50% tariff on all Canadian automotive and steel imports to start in January. The president has called Canada "one of the worst abusers" of American business.
"I don't want Canadian cars, I don't want Canadian parts, I don't want Canadian anything," he posted on Truth Social on Aug. 30. "They've been ripping us off for decades, and it's going to stop."
Ahead of the new tariffs, Trump posted a map of North America emblazoned with the American flag and labeling the whole continent the United States of America. He also called for a ban on selling Bombardier aircraft.
Canadian Prime Minister Mark Carney says the Sept. 8 tariffs are necessary to "protect our workers."
"We have everything we need to pivot and prosper," he added, saying his government would support workers affected by the trade war for as long as it takes.
