The ongoing trade conflict between Canada and the United States is escalating as the Canadian government introduces new retaliatory tariff measures. These measures come into effect starting on Tuesday, marking a significant development in the tensions between the two countries.

Canada's federal government has announced that it is countering the U.S. trade war with targeted tariffs aimed at sectors most impacted by the previous administration's tariffs. As part of these new levies, various American goods will face significant tariff increases.

Dairy

In the dairy sector, Canada is implementing a staggering 50 percent tariff on a wide array of American dairy products. This includes milk and cream—both concentrated and sweetened—as well as whey and various milk and whey protein products. Additionally, a 25 percent tariff will affect fresh cheese and curd products, particularly those specified types such as Camembert, brie, blue cheese, cheddar, mozzarella, Swiss, Gruyère, Havarti, and Parmesan, amongst others.

Under the Canada-U.S.-Mexico Agreement, imports of U.S. dairy products can be tariff-free until specific quotas are reached, at which point tariffs can soar up to 200 percent. However, the newly established 50 percent tariffs will apply to imports both below and above these quota rates, as stated by the Finance Department.

Seafood

Initially, Canada proposed a 25 percent tariff on a broad range of U.S. seafood; this included various types of live, fresh, preserved, and frozen seafood such as salmon, halibut, cod, and lobster. However, on August 26, Ottawa retracted these plans, citing industry feedback from the fishing and processing sectors.

Forestry and Wood

In terms of forestry, a flat 25 percent tariff will be applied to U.S. wood products, mainly targeting softwoods like pine, fir, and spruce that have been sawed or sliced thicker than six millimeters. Furthermore, plywood and veneered panels will incur a hefty 50 percent levy. Various paper products such as toilet paper, napkins, and corrugated boxes will also be subjected to tariffs, with specific rates varying between 25 and 50 percent based on the size of the imports.

Additionally, wooden furniture for household use will face a significant 50 percent tariff—except for kitchen furniture, which will be taxed at a 25 percent rate. Notably, as of August 26, Ottawa also applied a 50 percent tariff on imports of wood charcoal.

Steel, Aluminum, and Copper

Multiple products within the steel and aluminum sectors will now encounter increased tariffs of 50 percent, an escalated figure compared to the previous 25 percent rate. This includes various steel rods, bars, sheets, and prefabricated items such as bridges and scaffolding. Aluminum items like wires and rods are also included under this new tariff regime.

Beginning from March 2025, Canada introduced a 25 percent tariff on American steel and aluminum products as a response to U.S. tariffs on Canadian metals, which were later increased to 50 percent by former President Donald Trump.

Cosmetics, Clothing, and Textiles

Under the cosmetics category, a range of beauty products—including perfumes, sunscreens, and lip makeup—will incur a 50 percent tariff. Similarly, a wide variety of clothing items ranging from suits and overcoats down to T-shirts and dresses will also be subject to this steep tariff. Protective clothing and hazardous material suits will not be exempt from this levy.

For textiles, a 25 percent tariff will be applied to handwoven rugs, tiles, and carpets made from specific natural materials.

Other Products

Many other products are similarly affected by these new tariffs. A 50 percent tariff will hit smartphones, video game consoles, golf clubs, and various appliances, while items such as exercise equipment and fishing rods will also face similar penalties. Specifically, American natural honey and molasses will now incur a 50 percent tariff.

In addition, significant tariffs will apply to various plastic products, and most air conditioning units will be charged a 15 percent tariff. Certain other machinery and tools, including forklifts and lawn mowers, are subject to tariffs of 15 or 25 percent depending on their specifications.

Rail locomotives and train parts are also included in this tariff scheme, facing a 25 percent tariff, while motorcycles will be levied at 50 percent. Lastly, various semi-trailers are subject to a 25 percent tariff, and molds for metal, rubber, and plastics will face a 15 percent tax.