CA, US & World
Canada Announces New Tariffs on U.S. Goods as Trade Tensions With Trump Escalate
Canada is escalating its trade fight with the United States, announcing new tariffs on hundreds of American products in response to President Donald Trump's latest tariffs on Canadian goods.
Canada's finance minister announced that the country will impose counter-tariffs of up to 15%, 25% or 50% on $27.6 billion worth of imports from the United States beginning September 8.
The tariffs will cover more than 700 products, including items such as steel and electronics. Canadian officials say the tariffs will generally match the U.S. tariff rate imposed on comparable Canadian goods.
The announcement comes after Trump imposed 50% tariffs on many Canadian products and criticized Canada on social media, accusing the country of taking advantage of the United States.
Trade negotiations between the two countries broke down last week, increasing concerns about the economic impact of the escalating dispute.
Businesses in states that rely heavily on trade with Canada are already feeling the effects.
Minnesota exported more than $5 billion in goods to Canada last year, according to government data, while Canadian companies employ nearly 30,000 people in the state, according to state officials.
Small businesses along the U.S.-Canada border also rely on Canadian shoppers.
Echo Mae, co-owner of Northwest Yarns & Mercantile in Bellingham, Washington, said her business has already seen a 20% drop in sales as fewer Canadians cross the border to shop.
Mae said additional tariffs could put the business at risk of closing.
Canada also supplies electricity to several northern and Midwestern U.S. states. Ontario's premier has threatened to add a surcharge to electricity exports as part of Canada's potential retaliation, saying all options remain on the table.
The latest moves mark another escalation in the trade dispute between two of the United States' largest trading partners, with businesses and consumers now facing increased uncertainty over prices and cross-border commerce.
By: NBC Palm Springs
August 25, 2026
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