Canada hits nearly 600 U.S. products with tariffs, doubling steel and aluminum duties to 50%, as trade war intensifies; Trump vows to escalate

Canada has imposed nearly $28 billion in tariffs on 600 U.S. products, doubling duties on steel and aluminum to 50%. This retaliatory measure follows U.S. tariffs on Canadian goods, escalating the trade war as President Trump vows further action against Canadian industries.

thestar.com8 September 2026 · 13:42 UTC

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Canada has implemented nearly $28 billion in tariffs on 600 U.S. products, including a significant increase in duties on steel and aluminum from 25% to 50%. This action is part of a dollar-for-dollar retaliation against U.S. tariffs imposed on Canadian goods.¹²

The tariffs also target American cheese, household appliances, machinery, and clothing, with import taxes ranging from 15% to 50%. This escalation in trade tensions comes as President Trump has vowed to further escalate the situation in the new year, which Prime Minister Mark Carney claims aims to “destroy” Canadian industries.³

The ongoing trade war has created uncertainty in various sectors, particularly affecting the Toronto region's fall real estate market, which is typically the second busiest after spring. Experts are divided; some predict an increase in sales with only modest price drops, while others remain cautious. The consensus is clear: the rising tensions between Canada and the U.S. are a wild card impacting the market.

As the situation develops, both nations are bracing for potential further retaliatory measures, with the trade war showing no signs of abating.

Key Insight

“The $28 billion in new duties target American cheese, appliances, machinery, and clothing with rates of 15%, 25%, and 50%. The escalating conflict is also clouding the Toronto region's fall real estate season, historically the second busiest after spring.”