Canada retaliates against US with tariffs of up to 50% as trade war escalates

Why it matters: With trucks carrying more than half the value of U. S. -Canada freight, escalating tariffs threaten to disrupt cross-border volumes, manufacturing supply chains and carrier demand along major gateways such as Detroit, Port Huron and Buffalo. Canada announced retaliatory tariffs of up to 50% on billions of dollars of U. S.

goods Tuesday, escalating a trade dispute between the two countries after negotiations collapsed over the weekend. Canadian Finance Minister François-Philippe Champagne said Ottawa will impose “dollar-for-dollar” counter-tariffs on about $27. 6 billion worth of U. S. imports, with rates of 15%, 25% and 50%. The tariffs are scheduled to take effect Sept. 8.

“This is an unprecedented challenge imposed on Canada, but Canada will meet the moment,” Champagne said during a news conference in Ottawa, according to ABC News. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.

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push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); Champagne said Canada’s tariffs will match U. S. duties “dollar for dollar, rate for rate.” The targeted imports represent about 8% of total U. S. exports to Canada, based on 2025 Census Bureau data.

The counter-tariffs cover a broad range of American products, including seafood, dairy products, paper products, furniture, apparel, cosmetics, tools, motorcycles, steel and aluminum. The announcement comes after U. S. -Canada trade negotiations collapsed over the weekend and the Trump administration imposed 50% tariffs on some Canadian goods Saturday.

Canadian Prime Minister Mark Carney said Saturday that U. S. negotiators had demanded concessions Ottawa was unwilling to make. “They asked too much and offered too little,” Carney said. The escalating tariffs could have significant implications for freight moving across the world’s busiest bilateral commercial relationship. From January through June, the U.

S. exported $175. 8 billion in goods to Canada — the second biggest export trading partner after Mexico — accounting for 14% of all U. S. exports, according to the Census Bureau. The U. S. imported $200 billion in all goods from Canada during the first half of the year, accounting for 11. 5% of all U. S. imports. Approximately 5.

5 million commercial trucks enter the U. S. from Canada annually, averaging about 15,000 trucks per day and carrying an estimated $396 billion in goods. Trucks account for more than 55% of the value of freight traded between the two countries, with Detroit, Port Huron, Michigan, and Buffalo, New York, among the busiest truck crossings. window.

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pubads(). collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); President Donald Trump said Monday that the U. S. will increase tariffs on Canadian-made automobiles and auto parts from 25% to 50% beginning Jan. 1, 2027.

The higher tariff will also apply to steel and trucks, according to the president. The post Canada retaliates against US with tariffs of up to 50% as trade war escalates appeared first on FreightWaves.