Canada has imposed fresh tariffs of up to 50 per cent on hundreds of US-made products, escalating the trade dispute between the two neighbours after negotiations broke down last month.
The retaliatory duties came into force at 12:01 am on Tuesday, September 8. Canada’s Department of Finance had published the tariff schedule on August 25 before revising it a day later.
The updated list covers 629 tariff classifications, representing about C$27.6 billion (US$20 billion) worth of annual US imports. The list was reduced from the original 874 classifications after 254 fish and seafood categories were removed, while nine other items were added.
Which US products face Canadian tariffs?
The new duties are divided into three tariff brackets — 50 per cent, 25 per cent and 15 per cent — based on the classification of the imported goods.
Products facing a 50 per cent tariff include:
- Steel and aluminium products
- Concentrated milk and cream
- Whey products
- T-shirts, sweaters, jackets and dresses
- Perfumes and cosmetics
- Plastic products
- Paper and pulp
- Smartphones and communications equipment
- Furniture and plywood
- Sporting and recreational goods
Canada has also raised some existing counter-tariffs on US steel and aluminium products to 50 per cent, matching the level of US duties.
Products facing a 25 per cent tariff include:
- Cheese
- Refrigerators and washing machines
- Softwood lumber
- Toilet paper
- Insulated wiring
- Kitchen furniture
- Stoves and ranges
- Selected household appliances and their parts
Tariffs already imposed on US automobiles remain separate from the latest measures.
Products facing a 15 per cent tariff include:
- HVAC equipment
- Forklifts
- Agricultural machinery
- Some electronic products
Will prices rise for Canadian consumers?
Canadian consumers could eventually pay more for some US products if retailers pass the additional import costs on to shoppers.
However, a 25 per cent tariff does not automatically translate into a 25 per cent increase in the retail price. The duty is calculated on the customs value of the imported product, while businesses may absorb part of the additional cost.
The impact may also be delayed as retailers continue selling goods imported before the new tariffs took effect. Canadian manufacturers that depend on affected US components or raw materials could also see their production costs rise.
Which US goods are exempt?
The new tariffs apply to products classified as US-origin under Canada-United States-Mexico Agreement (CUSMA) country-of-origin marking rules.
US-origin goods that were already in transit to Canada when the tariffs took effect are exempt from the new measures.
Why did Canada impose the tariffs?
Canada described the latest measures as a dollar-for-dollar response to new US tariffs imposed last month on Canadian exports.
The US duties affected a range of Canadian products, including wine, furniture, dairy goods, cement, clothing, fishing rods and hockey equipment.
The latest Canadian action marks another escalation in the 18-month trade dispute between the two countries, with businesses and consumers on both sides facing the prospect of higher costs as the tariff battle continues.
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