Canada Targets US Steel, Fish With 50% Tariffs as Trump Trade War Deepens

Canada will impose “dollar-for-dollar” tariffs on more than 700 US products from September 8, matching the rates of Washington’s latest duties as the trade dispute between the two North American neighbours expands across steel, food, consumer goods, electronics and other sectors.

The Canadian government announced the measures Tuesday after the Trump administration introduced 50% tariffs on roughly $20 billion worth of Canadian goods. Those products, ranging from natural honey to hockey sticks, account for about 5% of the value of goods Canada sent to the US last year. Ottawa said its new duties would be set at 15%, 25% or 50%, targeting products “most affected by U.S. tariffs”.

The latest measures add to tariffs imposed by President Donald Trump on Canada during his second term, as both governments signal the possibility of further escalation. Trump has also said tariffs on Canadian cars, trucks, automotive parts and steel could rise to 50% from January 1, 2027.

Canada focuses retaliation on steel, food and consumer goods

Steel and aluminium will account for the largest share of Canada’s new measures. The list includes wire, rods, pipes and foil, as well as other products made from the two metals.

Canada is also targeting a range of American food products, including live and frozen fish, crustaceans, oysters and mussels, cheese and curd products, natural honey, molasses and baking mixtures.

Other goods facing the new tariffs include perfume, makeup and hair preparations, carpets and other floor coverings, toilet paper, facial tissues and envelopes.

Clothing products such as T-shirts, jackets, coats and gloves are included, along with stoves, ranges, refrigerators and other household appliances. Smartphones, video game consoles, motorcycles, trailers, fishing rods and exercise equipment are also on the list.

Many of the products mirror goods on which Washington began imposing 50% tariffs over the weekend. According to AP, Canada will raise tariffs on many American products from 25% to 50%, while the new measures will carry rates of 15%, 25% or 50% depending on the product.

The Canadian government said the rates would match US tariffs imposed in the latest round as well as duties applied previously to specific sectors.

Washington’s latest measures cover more than 550 Canadian products

The Canadian action follows a US tariff list covering more than 550 Canadian products. Washington's list includes goods such as natural honey, vegetable seeds and flower bulbs, alcoholic beverages such as beer and vermouth, ice skates and other sports accessories, household goods and smartphones.

AP reported, Trump used Section 338 of the Tariff Act of 1930 to impose the latest tariffs. The Great Depression-era provision had remained dormant and had never previously been used. It allows the president to impose import taxes of up to 50% on goods from countries that have discriminated against US businesses.

Trump has said Canada discriminated against US businesses in the auto, alcohol and dairy sectors, particularly following the implementation of his earlier import taxes last year. The latest US tariff list, however, covers a wider range of Canadian goods.

US steel and aluminium tariffs add another layer to the dispute

Canada’s retaliation also covers steel and aluminium products even though most such imports already face a 50% US sectoral tariff.

Some goods have qualified for lower US duties under an adjustment introduced by the White House earlier this year. The new Canadian measures nevertheless extend across a wide range of steel and aluminium products.

AP reported that businesses and households on both sides of the border could face higher costs as tariffs push up the price of imported goods.

Auto sector faces another potential increase

The tariff dispute is also moving towards the automotive sector.

Trump said on social media Monday that his administration would raise tariffs on Canadian cars, trucks, automotive parts and steel to 50% from January 1, 2027. Canada currently faces a broader 25% US tariff on autos, while a 50% sectoral tariff on most steel imports is already in effect.

Canadian Prime Minister Mark Carney said the proposed auto-sector tariff would “gradually dismantle” Canadian production. He accused Washington of trying to subordinate Canada and said US demands during the failed talks showed that Americans wanted to “destroy our major industries.”

Trump also introduced a separate point of tension on Tuesday, saying the United States was giving “serious consideration” to renaming Lake Ontario “Lake America” amid his feud with Ontario Premier Doug Ford.

Ford told AP that Ontario would be ready to cut off electricity and critical minerals to the United States if the trade war worsens.