Canada hits US with counter-tariffs as trade dispute escalates

Nexus Europa Newsroom
Posted Aug 27, 2026, 05:30 PM UTC · In the digest of 2026-08-27-1730
Canada hits US with counter-tariffs as trade dispute escalates
Photo: France24

Canada has responded to US import duties with dollar-for-dollar counter-tariffs of up to 50 percent on American goods following failed trade talks.

Following the collapse of bilateral negotiations, the United States implemented 50 percent tariffs on $20 billion worth of Canadian imports, affecting around five percent of Canada's annual exports to its southern neighbor. The levies target a wide variety of goods, including consumer products and industrial equipment.

In response, Canadian Prime Minister Mark Carney halted further trade discussions and announced reciprocal counter-tariffs of up to 50 percent on approximately C$28 billion ($20 billion) of American goods. Ottawa's retaliatory measures encompass items such as steel, furniture, apparel, and agricultural products. To cushion domestic industries and workers from the fallout, Canadian authorities also unveiled targeted economic relief measures. Meanwhile, US President Donald Trump cautioned that any Canadian counter-measures could trigger additional import restrictions from Washington.

Sources: BBC News, Cyprus Mail, France24, STV News, Sweden Herald

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