Canada imposes C$27.6 billion in tariffs on US goods after new US duties

WASHINGTON, 26 AUGUST 2026 —

Canada will impose tariffs on C$27.6 billion ($19.9 billion) of US goods starting September 8, matching new US duties announced by President Donald Trump dollar-for-dollar.

The counter-tariffs cover more than 700 products across steel and aluminium, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics, with rates ranging from 15% to 50%. The measures take effect on the same day as the US tariffs they respond to.

Ottawa also announced a C$7.5 billion ($5.42 billion) funding package to support small and medium-sized businesses affected by the trade measures. The dispute escalates after Trump imposed 50% tariffs on Canadian products worth $20 billion on Saturday, just days after announcing a separate trade deal. On Monday, he doubled existing tariffs on Canadian autos to 50%, effective January 1.

Canada’s move follows weekend tariffs by Trump and his recent rhetoric, including suggesting renaming Lake Ontario to “Lake America” and calling Prime Minister Mark Carney “Governor Carney.” Trump also claimed on Truth Social that the US lost $60 billion annually to Canada over the past decade, though Statistics Canada data shows a trade surplus of C$9.9 billion ($7.1 billion) in Canada’s favour.

Analysts warn US businesses and consumers will bear most of the tariff burden. A Kiel Institute report found US importers and consumers absorb 96% of tariff costs, with 550 consumer goods—including ice skates, toilet paper and paint—facing higher prices.

On financial markets, the price of gold edged up 0.03% to $4,696 per ounce, while the US dollar fell 0.04% to 98.96 and the Canadian dollar rose 0.04% to 72.27. In Toronto, the S&P/TSX Composite Index gained 0.6%, while US equities showed mixed performance, with the Dow flat and the Nasdaq up 0.5%.

For Malaysian businesses, the escalation risks broader trade uncertainty and potential spillovers into global supply chains, particularly for commodities and manufactured goods exposed to North American markets.

Related: Washington