Canada retaliates with 'dollar-for-dollar' tariffs on US exports

26th Aug 2026 07:46

(Sharecast News) - Canada has announced retaliatory tariffs on C$28bn ($20bn) of American-made exports, hitting back at the 50% levies imposed by the Trump administration after trade talks between the neighbouring nations fell apart last week.

The Canadian government said the counter-tariffs, focused on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, were designed to protect domestic businesses that will be impacted by the US levies.

"Following the US decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, Minister Champagne confirmed today that Canada will match the new US tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on US goods," the government said in a statement.

Canada also pledged to share a C$7.5bn package to support domestic workers and businesses most affected by the US protectionist measures. The government has already given C$25bn in support since the implementation of what it called "US unjustified tariffs".

"[US] tariffs will have real consequences for Canadian workers, businesses and communities across our nation," said Finance Minister François-Philippe Champagne, who said the government was "standing up" for Canadians.

"Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy," he said.

Canada, America's second-largest trading partner behind Mexico, is thought to be specifically targeting US manufacturers in red states, where the Republican Party is vulnerable in November's mid-term elections.

In a statement, the White House claimed that Canada had been "ripping off the US for decades" and blamed the neighbouring government for the breakdown in talks last Friday.

"Canada chose unreasonable demands, walkbacks, and flat-out rejection," the White House said.