Canadian retaliatory tariffs set to take effect after midnight

Canada will impose counter-tariffs of 15%, 25%, or 50% on a range of US products at 12:01 a.m. on Tuesday unless the two countries can reach a last-minute trade deal.

The retaliatory measures—which include 50% tariffs on US steel and aluminum—came after trade talks between Washington and Ottawa collapsed last month.

The failure of the two countries to reach a deal led the US to impose 50% tariffs on a range of Canadian goods under Section 338 of the Tariff Act of 1930.

Canadian Prime Minister Mark Carney pledged retaliation. Days later, Canada drew up a list of US goods to target. (The full list is here.) The stated goal: matching not only Section 338 tariffs but also Section 232 tariffs “dollar for dollar, rate for rate.”

Recall that the US has placed Section 232 tariffs of 50% on imported steel and aluminum from most countries, including Canada.

For steel and aluminum, the trade fight between the US and one of its closest allies matters because of how closely interlinked North American supply chains are.

Prospects of a deal looked bleak on Monday afternoon.

“Completely unjust and unfair!” President Donald Trump wrote in a post on Truth Social on Monday. “If they want our Market, they must build here, and stop treating America like a ‘piggybank.'”

By the numbers

Canada and Mexico are the largest destinations for US steel exports.

Last year, Canada was the second-largest destination for US steel exports after Mexico. The US shipped 2.55 million metric tons (mt) of steel to Canada in 2025, according to Commerce Department figures. The amount included 540,462 mt of galvanized sheet, 213,042 mt of plate, 185,208 mt of hot-rolled (HR) coil, and 175,928 mt of cold-rolled (CR) coil.

Through July this year, the US had shipped 1.31 million mt of steel to Canada. That figure includes 273,033 mt of galvanized sheet, 98,000 mt of plate, 97,676 mt of hot-rolled coil, and 86,380 mt of CR coil.