Canada braces for prolonged trade war as US counter-tariffs take effect

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Canada activated counter-tariffs on September 8, 2026, covering 20 to 27.6 billion dollars worth of US imports, in response to the 50% duties imposed by Washington on August 22. These measures spanning over 700 tariff lines target steel and aluminum with a 50% surcharge, dairy products and appliances at 25%, and electronics at 15%. Ottawa has also deployed a 7.5 billion Canadian dollar support package to help affected businesses and workers. This represents the most significant trade escalation between the two neighbors since tariff exchanges began in 2025.

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