Canada Imposes New Counter-Tariffs on $27.6 Billion Worth of U.S. Imports
The new Canadian counter-tariffs on U.S. goods took effect on September 8, escalating tensions in the trade conflict.
Canada imposed a 15% to 50% tariff on $27.6 billion worth of U.S. imports, targeting sectors like steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics.
The tariffs will affect products such as dairy items (25-50%), household goods (up to 50%), including plates, plastic containers, kitchenware, tableware, and toilet paper. However, businesses can absorb the costs or switch suppliers, which might mitigate price increases for consumers.
A previous study by the Bank of Canada found that during a similar tariff period in 2025, prices of affected products rose gradually and reached about 6% above their original prices after mid-June. When the tariffs were removed, prices returned to normal.
The new tariffs could also impact Canadian-made products as higher costs for materials and supplies are passed on to consumers.