Four takeaways from Canada’s tariff counterpunch

Following the dramatic collapse of trade talks with the United States last week, the Canadian government has unveiled the list of American products Canada will target with retaliatory tariffs as of Sept. 8.

The countertariffs, aimed at close to 900 items, run the gamut from fishing rods to industrial equipment and cover roughly $28-billion worth of goods.

Here are four things we learned from Canada’s tariff hit list.

An eye for an eye

From the outset, Prime Minister Mark Carney said Canada would respond dollar-for-dollar to U.S. President Donald Trump’s 50-per-cent tariffs on $27.6-billion worth of imports from Canada.

Many of the items on Canada’s list appear to be lifted directly from Mr. Trump’s own tariff playbook, including honey, hair care products and metal furniture.

But while the flow of some tariffed items like networking equipment between the two countries are similar in scale, most are not. Canada shipped much more insulated electric wire and cable to the U.S. than it bought. The same goes for honey, with Canadian producers facing a bigger hit than their U.S. counterparts.

Some tariffs will hit closer to home

Despite the announcement of a $7.5-billion support package for businesses and workers, there’s little question that Canadian consumers will feel the impacts of the countertariffs. Importers will inevitably pass some of their tariff costs on to their customers.

At the same time, the tariffs will lower U.S. imports, and that reduced competition will give domestic companies more pricing power.

While countertariffs on industrial products like steel and networking equipment account for the largest dollar values, duties on consumer items like golf clubs, hair care products, video game consoles, clothing, and furniture will all hit Canadians more directly.

The big picture

Not every state will feel Canada’s countertariffs equally.

Maine, which exported $300-million of lobster to Canada in 2025, is acutely exposed since roughly one-third of the products facing countertariffs are seafood.

Likewise, Canada is one of the largest foreign purchasers of motorcycles from Pennsylvania, where Harley Davidson has a plant. More than $120-million worth of motorcycles from that state will now be subject to a 50-per-cent tariff.

Neighbouring Ohio is arguably the state with the most at stake, with $3.2-billion of tariff-covered exports heading north, largely made up of metals and metal derivatives.

From zero to 50

Canada’s retaliation list targets both products covered by existing tariffs – albeit now with higher levies – and goods that currently enter Canada duty-free.

For instance, a key element of Canada’s retaliation, and one that carries the largest dollar value, was the move by Ottawa to hike existing tariffs on steel and aluminum and derivative products to 50 per cent from the current 25 per cent.

But many other items are being hit by duties for the first time, and the tariff costs are significant. Canada’s 2025 imports of $920-million worth of networking equipment, such as routers and switches, would incur a $460-million duty charge.