Canada has announced reciprocal tariffs of up to 50% on C$27.6 billion worth of US imports, taking effect September 8, 2026. The move comes after USMCA renegotiation talks collapsed, prompting the US to invoke Section 338 and impose 50% tariffs on Canadian products over alleged trade discrimination in automotive, dairy, and beverage sectors.
In a dollar-for-dollar response, Ottawa doubled its tariffs on US steel from 25% to 50%. The escalation poses a major threat to American steel producers.
In 2025, US steel shipments to Canada fell 28.1% to 2.55 million tons after an initial 25% tariff was introduced. Market analysts warn that the new 50% duty will trigger an even sharper decline in bilateral steel exports.