Canada has introduced retaliatory tariffs on a wide range of American products, raising concerns that the ongoing trade dispute with the US could continue for some time, with no immediate agreement in sight.
The new measures, which came into force on Tuesday, cover almost C$28bn ($20bn; £15bn) worth of US imports. The tariffs affect products ranging from steel and furniture to cotton T-shirts, with some duties reaching as high as 50%.
Fresh fish and lobster were initially included in the tariff list but were later removed following objections from Canada’s seafood industry. The decision highlights the difficult balance Ottawa faces as it attempts to respond to US trade measures without placing additional pressure on Canadian businesses.
Officials in both countries have said they remain interested in reaching a trade agreement. However, negotiations have not resumed since discussions broke down in late August.
Canadian Prime Minister Mark Carney said last week that his government remains committed to reaching a long-term agreement with the US that would benefit both nations.
“We’re ready to sit down and strike that deal when the Americans are ready,” Carney told reporters.
US Trade Representative Jamieson Greer, however, said Canada must make the next move. Speaking to Fox News on Thursday, Greer claimed Washington had offered Canada its best possible deal but that Ottawa had rejected it.
He also said communication between the two sides had been limited since negotiations ended.
In a separate interview with Canadian broadcaster CBC, Greer warned that further retaliation could lead to additional US measures, including possible restrictions on imports of certain Canadian products.
The dispute has also raised concerns for major Canadian companies. On Monday, US President Donald Trump threatened to stop all US business with Canadian aircraft manufacturer Bombardier unless the company moved its manufacturing operations to the US.
Bombardier is one of Canada’s major businesses and contributed more than C$7bn to the country’s economy in 2024, according to a PwC report commissioned by the company.
Canada and the US share the world’s largest bilateral trading relationship, with trade between the two countries reaching nearly $900bn in 2025.
Businesses on both sides of the border are now preparing for the impact of the latest tariffs as the trade dispute intensifies.
The US currently imposes a 25% tariff on Canadian cars and trucks, along with duties on Canadian steel, aluminium and lumber. In late August, Trump also introduced new 50% tariffs on a range of other Canadian goods, including dairy products, alcohol, hockey sticks and perfume.
Canada’s latest measures, described by Carney as “dollar-for-dollar” retaliation, apply to hundreds of products imported from the US.
They come on top of existing Canadian tariffs on certain American-made cars and trucks that do not comply with the North American free trade agreement, known as the USMCA in the US and CUSMA in Canada.
