WASHINGTON, D.C. (RFD NEWS) — Canada is responding to new U.S. tariffs with retaliatory duties on more than 700 American-made products as trade tensions between the two countries escalate.
According to reports from the Associated Press, Canadian tariffs on U.S. steel, dairy products, appliances, farm equipment, pulp and paper, and electronics will take effect September 8 at rates of 15 percent, 25 percent, and 50 percent. Canada says it will match the corresponding U.S. tariff rate on each product.
Canadian Prime Minister Mark Carney says the response will focus on protecting Canadian industries. He says the tariffs will target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
“Canada will match Washington’s new tariffs dollar-for-dollar, which will come into force the Tuesday after Labor Day,” Carney said. “Our response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. It will also include products currently subject to unjustified Section 232 and 338 tariffs. A focused response to protect and defend our industries and allow them to compete with U.S. products in the Canadian market.”
The move comes after President Donald Trump announced that beginning in 2027, Canadian cars, trucks, automotive parts and steel will face a 50 percent tariff. The announcement includes large trucks.
Trump says Canada has been “ripping off the United States for years,” citing Canadian tariffs on farmers and farm products.
Those tariffs are in addition to the 50 percent tariffs announced over the weekend on about $20 billion worth of Canadian goods. Canadian leaders say they will fight back with their own tariffs, with some targeting agriculture.
U.S. Trade Representative Jamieson Greer says he has no plans to return to the negotiating table anytime soon.
RealAg Radio host Shaun Haney joined us on Tuesday’s Market Day Report to discuss the latest developments and what they could mean for farmers and the broader trade relationship.
In his interview with RFD News, Haney said Canada is expected to respond to the U.S. tariffs, with discussion of a dollar-for-dollar response totaling roughly $28 billion in U.S. imports. He noted that the specific list of products remained unclear at the time of the interview, although electronics and U.S. dairy were among those mentioned.
Haney also noted that Canadian Prime Minister Mark Carney could choose an alternative approach rather than imposing additional tariffs, including expanding consumer boycott campaigns similar to those seen with U.S. alcohol.
Autos Remain a Major Issue
The automotive sector remains one of the major unresolved issues in the trade discussions.
Haney said Canadian negotiators appeared willing to address the U.S. request involving dairy, but that autos remained a significant challenge.
He also pointed to another late issue involving Canadian French-language labeling requirements.
Canada has two official languages, and Haney said eliminating some of those labeling laws became another point of disagreement during the negotiations.
When Could Talks Resume?
Haney said he hopes the two countries return to negotiations quickly, noting the significant economic reliance between the U.S. and Canada.
He identified a window before Labor Day and September 8, when Canada was expected to implement additional retaliatory tariffs.
Beyond that point, Haney said the U.S. midterm election schedule could make negotiations more difficult, potentially pushing talks into November or December.
He said one person had speculated that negotiations might not resume until January, which Haney described as a long and unfortunate delay.
Canadian Farmers and Trade
Haney said agricultural groups on both sides of the border have been trying to stay out of the broader trade conflict. He emphasized the importance of the economic relationship between the two countries and said the agricultural sector is watching the ongoing uncertainty closely.
Haney also said the continued escalation could create challenges for the long-term relationship between the two countries.
He said Canada’s economic reliance on the United States makes the situation important for both sides and expressed hope that negotiations resume sooner rather than later.
Trade Tensions Grow As USMCA Review Continues
The trade tensions come as North American leaders continue reviewing the U.S.-Mexico-Canada Agreement, or USMCA.
Farm groups have been watching the agreement since it came up for review this summer. Jordan Dux of the Nebraska Farm Bureau says American producers cannot afford to lose access to the agreement and urges negotiations to continue.
“Our message has been very clear to the White House,” Dux said. “We need this free trade agreement. USMCA has been extraordinarily beneficial for U.S. agriculture. So trying to pull the United States out of the agreement is extremely problematic from our standpoint. So again, from our standpoint, our message has been the same: it’s ‘do no harm.’ That’s what we said when the president tried to renegotiate NAFTA during Trump 1. We were pretty happy and ultimately supported USMCA. The idea that we can just pull the United States out of this extraordinarily beneficial free trade agreement with Canada and Mexico, very problematic for us.”
Dux says pulling the United States out of the agreement would be “extremely problematic” for American agriculture. He acknowledges trade issues still need to be addressed, including Canada’s dairy commitments and Mexico’s policies surrounding non-GM corn.
“I’m not going to say that this agreement is perfect; I’m not going to say that anything is perfect, but Canada and Mexico have to come together,” Dux continued. “And it would be really easy for the White House to declare victory if they would agree to a couple of things as well. So we have to work through some of these things. Canada is not following through with their dairy commitments that they made in the original agreement. Mexico had their GM white corn ban that eventually was pushed back. But we still continue to hear how important non-GM corn is to the country of Mexico. So there’s plenty of issues to work out on both sides.”
The USMCA is now under yearly review, and several members of the Nebraska delegation have written to the White House urging leaders to keep discussions going.
