Canada has unveiled a sweeping package of retaliatory tariffs on U.S. imports worth nearly C$28 billion, escalating a growing trade dispute between two of North America’s largest economic partners.

The new measures, scheduled to take effect on September 8, were announced after recent trade negotiations between Washington and Ottawa collapsed without an agreement.

Under the plan, Canada will impose tariffs of up to 50% on a wide range of American products, including steel, aluminum, furniture, apparel, cosmetics, fragrances, honey, and seafood. Additional tariffs of 25% and 15% will apply to selected machinery, appliances, dairy products, and industrial equipment.

Canadian Finance Minister François-Philippe Champagne said the move was a direct response to tariffs recently imposed by the United States on Canadian exports.

“Canada must respond,” the minister said, describing the measures as both “proportionate” and “strategic.”

Key Measures Announced

50% tariffs: Steel, aluminum, furniture, clothing, cosmetics, perfumes, honey, and selected consumer goods.

25% tariffs: Dairy products, fish, seafood, dishwashers, and washing machines.

15% tariffs: Certain industrial equipment, forklifts, and air-conditioning machinery.

Canada also announced an additional C$7.5 billion support package aimed at helping workers and businesses affected by the trade dispute. The funding will be used to protect jobs and assist companies facing increased costs and market uncertainty.

Growing Trade Tensions

The latest exchange marks one of the most significant trade confrontations between the two neighbors in recent years.

The White House argued that the United States had offered Canada favorable market access during negotiations and accused Ottawa of making unreasonable demands. President Donald Trump has repeatedly criticized Canada’s trade policies, claiming the country has benefited unfairly from its economic relationship with the U.S.

Trump has also warned that tariffs on Canadian automobiles could rise to 50% beginning January 1, a move that Canadian Prime Minister Mark Carney says would severely impact Canada’s automotive, steel, and aluminum sectors.

Economic Impact Concerns

Business groups on both sides of the border have warned that continued tariff escalation could disrupt long-established supply chains, increase production costs, and raise prices for consumers.

Despite the tensions, officials from both countries have expressed hope that negotiations could eventually resume and lead to a broader trade agreement.