Canada’s $28-billion countertariffs remain set for Tuesday as trade talks stay stalled
Ottawa will proceed with broad retaliatory tariffs Tuesday, raising input costs for import-dependent firms as bilateral negotiations remain suspended.
Canada’s planned retaliatory tariffs on about $28-billion in U.S. imports remain scheduled to take effect at 12:01 a.m. Tuesday, with no formal Canada-U.S. meetings held over the Labour Day weekend to avert them. The measures cover steel and aluminum, textiles, stoves and hundreds of other products, according to federal officials. [1]
The Canadian action responds to new U.S. 50-per-cent levies imposed after Prime Minister Mark Carney withdrew from trade talks on Aug. 21. Officials said formal negotiations last occurred that day, while Trade Minister Dominic LeBlanc and Canada’s chief trade negotiator, Janice Charette, had neither held nor scheduled formal discussions with U.S. counterparts over the weekend. The Prime Minister’s Office also said Carney had not spoken with President Donald Trump since the week talks broke down. [1]
Ottawa says the countertariffs are intended both to support Canadian companies affected by U.S. tariffs and to increase political pressure in the United States. The tariff list’s breadth means the commercial effects will extend beyond directly targeted U.S. producers: Canadian businesses that depend on U.S.-sourced materials and products may face higher costs or procurement changes once the duties begin. [1]
Canadian Manufacturers and Exporters has warned that smaller manufacturers, in particular, may have limited ability to replace U.S. inputs quickly. The group has called for tariff remission where companies cannot source competitive alternatives, while maintaining that the policy objective should be removal of U.S. tariffs and a durable agreement restoring certainty for businesses and workers. [1]
Washington has pledged to respond if Canada proceeds. White House officials were reported to be considering action as early as Wednesday, including possible restrictions on Canadian alcohol, dairy and steel imports, though the scope remained under debate. With Ottawa saying it will not resume negotiations until the U.S. changes its approach, the immediate outlook is for the countertariffs to be implemented before any formal diplomatic channel reopens. [1]
The scheduled implementation of Canada’s roughly $28-billion countertariff package makes the near-term cost exposure more immediate for import-dependent manufacturers, including steel and aluminum users. The significance is moderate because the source confirms execution and a continued negotiating impasse, but does not establish new sector-specific tariff rates, measured price effects, or a finalized U.S. retaliation package. [1]