Canada’s Tariffs on U.S. Goods Take Effect, Rates Reach 50%

The duties range from 15% to 50% and were introduced in response to U.S. tariffs covering a similar value of Canadian exports.

The list also covers electronics, appliances, clothing, furniture, agricultural machinery, pulp and paper products. At a 50% rate, C$10,000 of affected U.S. steel or golf equipment generates C$5,000 in additional import duty.

About $20 billion in U.S. exports affected

The targeted products represent roughly 6% of annual U.S. goods exports to Canada. U.S. goods exports to Canada totaled approximately $333.6 billion last year.

The Canadian action follows Washington’s 50% tariffs on C$27.6 billion of Canadian goods, which took effect on August 22. U.S. measures cover products including cement, dairy, furniture, wine, hockey equipment, swimming pools and clothing.

Dairy and metals face the highest rates

Canada applies a 50% duty to several categories of U.S. milk, cream, whey and whey protein. Selected cheeses, including cheddar, Camembert, blue and processed cheese, face 25%. Numerous steel, stainless-steel, aluminum and copper products are also subject to the 50% rate, including steel wire, chains, nails, screws and some rolled products.

Golf clubs, golf equipment and selected fishing equipment are among the consumer products facing 50% tariffs.

Wider trade impact

The tariffs follow the collapse of U.S.-Canada trade negotiations in August. Separately, eight of Canada’s 10 provinces continue to restrict or prohibit sales of U.S. alcohol, while U.S. spirits exports to Canada have fallen by more than 70% year over year.

Canada sends more than 70% of its exports to the United States, while the U.S. remains heavily integrated with Canadian supply chains in energy, metals, agriculture and manufacturing.

The new measures leave roughly $20 billion of U.S. goods facing Canadian tariffs of up to 50%.