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Canada Announces $20 Billion in Retaliatory U.S. Tariffs
By Aurax Desk | August 25, 2026 | 2 min read
Canada has announced nearly $20 billion in retaliatory tariffs on U.S. goods after Washington imposed new 50% duties on Canadian imports. The measures mark a sharp escalation in the trade dispute between the two North American neighbors and are set to take effect Sept. 8.
A Commercial truck cross the Canada-U.S. border as both countries impose new tariffs on each other's goods.
The Canadian government said Tuesday it will impose tariffs on about C$27.6 billion ($19.9 billion) in U.S. products, with duties ranging from 15% to 50%. The measures cover roughly 700 products, including steel, aluminum, furniture, clothing, cheese, appliances, seafood, electronics and tools. Ottawa also announced a C$7.5 billion support package for businesses and workers affected by the trade conflict, including assistance aimed at helping companies manage cash-flow pressures.
The retaliation follows the Trump administration's decision to impose 50% tariffs on about $20 billion of Canadian goods after U.S.-Canada trade negotiations broke down. The latest U.S. duties apply to hundreds of Canadian products, while some major categories, including energy and potash, remain exempt from the new measures. Canada had previously announced that it would respond on a dollar-for-dollar basis if Washington proceeded with the tariffs.
The escalating dispute threatens to increase costs for businesses and consumers on both sides of the border and could disrupt supply chains that have developed through decades of close economic integration. Canada and the United States are major trading partners, with industries including manufacturing, agriculture, energy and technology closely linked across the border. Canadian officials have presented the new measures as a response to Washington's tariffs while seeking to limit the impact on Canadian businesses and workers.
Sources: Reuters, Associated Press, BBC and The Washington Post.
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