Updated August 25, 2026 @ 12:01pm
The federal government is increasing tariffs on American steel and aluminum products from 25 to 50 per cent in retaliation for the United States imposing tariffs last week on $27.6 billion of Canadian goods.
The government will also impose 50 per cent tariffs on clothing and apparel, and levy a 25 per cent tariff on appliances, dairy products, seafood, and certain steel and aluminum derivatives products.
A 15 per cent tariff is being tacked on a small list of items including hand tools, air conditioners and forklifts.
Finance Minister François-Philippe Champagne said the U.S. levies have "real consequences" for Canadian companies and consumers.
"Canada must respond and today we are — in a proportionate, targeted and strategic way," he said.
Champagne was among a number of federal cabinet ministers who presented the government's response at a news conference at an Ottawa roofing manufacturer on Tuesday.
Government officials at a technical briefing for reporters stressed Canada was not targeting any new products beyond ones the U.S. has already hit.
Ottawa is matching the dollar amount of the U.S. tariffs, but the list does not include all of the same items targeted by President Donald Trump — like hockey sticks and Canadian alcohol.
Officials said Canada selected products from the Canadian industries most impacted by the U.S. tariffs, to protect their market share.
"Economic sovereignty means the capacity to produce, invest and grow in Canada," Industry Minister MĂ©lanie Joly said.
She said the government has already spoken with Canadian retailers about ensuring Canadian products on their shelves are clearly identified and said Canadians should buy domestic products.
"Building at home is not a Plan B, it is a Plan A," she said.
The government also announced a $7.5-billion aid package for Canadian businesses impacted by the trade war with the United States.
Among the measures are new loan programs for businesses and more flexibility to apply for employment insurance.
This report by The Canadian Press was first published Aug. 25, 2026.
