Canada Slaps C$28 Billion Counter-Tariffs on U.S. Goods as Trump’s 50% Levy Escalates Fight
Updated
Updated · BBC.com · Aug 31
Canada Slaps C$28 Billion Counter-Tariffs on U.S. Goods as Trump’s 50% Levy Escalates Fight
3 articles · Updated · BBC.com · Aug 31
Summary
C$28 billion of U.S. goods will face Canadian counter-tariffs from Sept. 8, with Ottawa targeting steel, furniture, cosmetics and toilet paper in what it called a dollar-for-dollar response.
The move answers Washington’s new 50% tariff on about C$28 billion of Canadian goods that took effect on Aug. 22, extending a trade war that already hit steel, aluminum, lumber and autos.
Ohio is set to take the biggest state-level hit, with C$3.2 billion—12% of its exports to Canada—soon subject to tariffs; Illinois and Pennsylvania also rank among the most exposed.
Ontario and Quebec remain the most vulnerable inside Canada: Ontario has lost tens of thousands of manufacturing jobs since early 2025, while Quebec’s metal exports fell 36% year over year.
Canada’s average effective U.S. tariff rate has nearly doubled to 5.7% from 2.9% in June, even as firms push exports beyond the U.S. and Ottawa seeks more investment to cushion the shock.