Scope of the new tariffs
On Tuesday, Ottawa announced a fresh set of counter‑tariffs on more than 700 American products valued at $27.6 billion, a move that deepens the trade clash with the United States. The new duties, which will take effect on Tuesday 8 September, are set at three rates – 15 percent, 25 percent and 50 percent – mirroring Washington’s own levies. The list has been trimmed of seafood items, which were removed a day earlier after pressure from industry groups. Wood charcoal (including shell or nut charcoal), printed material such as pictures and articles, plaster‑based compositions, and a range of glass containers – including carboys, bottles, flasks, jars, pots, phials, ampoules and their closures – are now subject to the higher rates. Friday’s new additions will be subject to a 50 percent Canadian tariff.
The tariff schedule reflects Washington’s three‑tier approach.
Stakeholder consultation and ministerial input
A spokesperson for Finance Canada said on Friday that the response was shaped by extensive dialogue with provinces and industry, noting that “We’ve been working with and listening to stakeholders and provinces all throughout this process. That has informed our response and crucially helped us adjust our support measures to ensure our sectors and workers’ immediate needs and reality are acted on.” The finance ministry added that the decision aimed to “match the American tariffs dollar for dollar, rate for rate.”
Finance Minister Francois‑Phillipe Champagne told reporters on Thursday that removing tariffs on U.S. seafood products was “in Canada’s best interests,” signalling a strategic shift after listening to fishing industry concerns.
Internal trade measures and labour mobility
The Committee on Internal Trade, comprising federal, provincial and territorial ministers, convened in Iqaluit on Thursday. The body agreed to reach an agreement in principle by the end of fall 2026 and scheduled another meeting for October. Ministers are working to reduce barriers to labour mobility and to promote mutual recognition of professional credentials across the country. In addition, they pledged to “continue to work to reduce barriers for alcoholic beverages across Canada to support consumer choice,” aiming to broaden options for consumers.
These internal initiatives seek to complement the external tariff measures by easing domestic constraints on trade and employment.
Why it matters
The expansion of Canada’s counter‑tariffs signals a more assertive stance in the ongoing Canada‑U.S. trade dispute, potentially reshaping market access for North American manufacturers and service providers. By aligning duty rates with those imposed by the United States, Ottawa aims to exert pressure while safeguarding vulnerable sectors and workers, a balance that could influence supply chain strategies and policy dialogue in both nations. The simultaneous push on internal trade reforms may also ease some of the logistical frictions that have hampered cross‑border commerce, offering a modest boost to economic resilience amid heightened geopolitical tensions.
