Story summary
In September 2024, Canada imposed retaliatory tariffs on about $20 billion worth of American goods as a response to the U.S.'s imposition of 50% tariffs on approximately C$27.6 billion in Canadian goods earlier that August. The White House had targeted around 0.6% of U.S. imports from Canada, including items like outboard motorboats and metal products. In turn, Canada's retaliatory measures hit American goods valued at about $20 billion.
These actions escalated an ongoing trade war between the U.S. and Canada, stemming from failed formal negotiations in August 2024. The tensions were further heightened when President Trump announced tariffs on nearly $28 billion worth of Canadian products, including alcoholic beverages, among others. In response to these developments, Canadian Prime Minister Mark Carney began to pivot towards diversifying trade relations with countries like China and India, aiming to reduce Canada's dependence on the U.S. market.
In January 2026, Carney became the first Canadian prime minister since 2017 to visit China, focusing on agriculture, energy, and investment partnerships. This marked a significant shift in Canada’s trade strategy as it sought new economic alliances amidst deteriorating relations with the United States.
Written for “US Tariffs On Canada” on 2026-09-15,
grounded in this article and the 2 other(s) covering the same event.
Trump's latest round of 50% tariffs on Canadian goods now in effect
But U.S. levies on salt, cement, toilet paper lifted as of Tuesday
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levies → lift → Tuesday
A new round of U.S. tariffs on Canadian goods took effect just after midnight on Tuesday, adding 50 per cent levies to 110 products ranging from specific cheeses to motorboats, all-terrain vehicles (ATVs) and furniture.
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round → take → motorboats
The fresh tariffs are part of a series of additions and removals announced by the Trump administration last week.
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tariffs → announce → administration
Categories added to the tariff list include aluminum products, paper and wood products, iron or steel beams, electric lamps and mattresses.
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Categories → add → products
The White House said it would simultaneously remove tariffs on 10 items including salt, sugar, cement, switchboards and toilet paper in an effort to "offset the burden to U.S. commerce while better serving the public interest."
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it → say → interest
In 2024, Canada exported approximately $328 million US worth of toilet paper to the U.S., making it the country's largest international provider.
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it → export → U.S.
Canada is also one of the biggest salt providers south of the border, with the U.S. importing roughly $159.2 million US worth of salt from Canada in 2025, according to UN Comtrade and World Bank trade data.
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U.S. → import → data
The removals and additions amount to nearly the same economic value, effectively cancelling each other out, experts say.
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experts → amount → other
"In dollar terms they are basically the same," Wolfgang Alschner, the Hyman Soloway chair in business and trade law at the University of Ottawa, told CBC News.
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Alschner → tell → News
The categories that had tariffs removed represent roughly $2.41 billion, while the added tariffs cover roughly $2.56 billion of 2025 trade, according to an analysis by Alschner.
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tariffs → have → Alschner
This amounts to only a slight increase in tariff coverage, representing a fraction of trade between the two countries.
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This → amount → countries
The biggest dollar value is in the category of switchgear assemblies and switchboards — the U.S. imported roughly $750 million US of these from Canada in 2025, which have applications ranging from cars to airplanes, Alschner said.
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Alschner → import → airplanes
'You need to salt your roads'
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You → need → roads
The decision to remove some tariffs shows that the U.S. is paying attention to which costs get passed down to the American consumer, and are willing to recalibrate to ease their own economic pain, Alschner said.
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Alschner → remove → pain
"You need salt to salt your roads in winter.
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You → need → winter
So this is not something that's easily substituted away," he said.
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he → substitute → ?
"
What will Trump's retaliatory tariffs do to Canada’s economy big picture?
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tariffs → do → picture
Not that much, economists predict
- Analysis
Trade 'war' or not, are Canada and the United States now dug in?
The new measures come after the U.S. and Canada failed to reach a trade agreement in August, ramping up an ongoing trade war.
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U.S. → predict → war
On Aug. 22, the U.S. followed through with its threat of crushing 50 per cent tariffs on a wide swath of Canadian goods.
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U.S. → follow → goods
Canada retaliated with its own tariffs on nearly 700 categories of U.S. goods, which came into effect on Sept. 8.
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which → retaliate → Sept.
In addition to new tariffs on Sept. 15, U.S. President Donald Trump announced a pending import ban on Canadian booze, motorcycles and a handful of other goods.
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Trump → announce → goods
The import ban doesn't take effect until Sept. 29.
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ban → take → Sept.
Experts say the scope of the trade war has grown, and as a result, regional disruptions could lead to job losses and the closure of small businesses.
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disruptions → say → businesses
Alschner says the latest tariffs will limit some Canadian companies from pivoting.
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tariffs → say → companies
For instance, an aluminum company might have been able to shift more production to types of aluminum that weren't tariffed before.
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that → shift → aluminum
But with the addition of more hyper-specific tariffs, "some of these loopholes have been closed."
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some → close → loopholes
Economist Andrew Dicapua told CBC News the muted response from the U.S. to Canada's counter-tariffs, coupled with the longer timeline before the import bans come into effect, could be a sign that we're closer to a deal.
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we → tell → deal
Trump recently commented that a trade deal with Canada could come "fairly soon," while meeting with Irish Prime Minister Micheál Martin in Dublin over the weekend, Dicapua noted.
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Dicapua → comment → weekend
Carney warns of tough times ahead in video message as retaliatory tariffs kick in
What tariffs are still in place?
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tariffs → warn → place
"The fact that those bans were put later than the tariffs themselves should give us an indication that the U.S. is leaving room for negotiation," Dicapua said.
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Dicapua → put → negotiation
"The bottom line is that we've got to get to an agreement with the United States as quickly as possible.
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we → get → States
This tit-for-tat strategy, although well-intentioned, is not a sustainable route."
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strategy → intentione → tat
The Aporia
