Analysis
September 9, 2026
Canada tariffs draw calls for negotiations as US response escalates
Written by Laura Miller
Canada’s retaliatory tariffs on US goods have drawn support from Canadian steel producers and labor groups. Meanwhile, US manufacturers and trade officials are calling for renewed negotiations as the dispute adds costs and uncertainty to cross-border supply chains.
Canadian support
The Canadian Steel Producers Association (CSPA) backed Ottawa’s tariff response, saying: “Canada’s steel producers are highly competitive and throughout this trade dispute initiated by the U.S. Administration, we have sought to ensure that we have as level a playing field as possible. The measures the Canadian Government took today to increase the tariff on U.S. steel to 50% advances this goal.”
United Steelworkers (USW) Canada also supported the retaliation. “Canada rightly fought back to protect Canadian jobs, industries, culture and sovereignty,” USW Canada Assistant to the National Director Meg Gingrich said. USW International President Roxanne Brown separately called for the two countries to return to negotiations and reach an agreement serving workers on both sides of the border.
Canadian Prime Minister Mark Carney said efforts to diversify Canada’s trade away from the United States “will come at a cost,” according to a BBC report. He called the counter-tariffs “necessary” to protect Canadian workers.
US response
The US response expanded on Tuesday, Sept. 8. US Trade Ambassador Jamieson Greer said President Trump had used Section 338 authority to ban certain Canadian products from the US market, including motorcycles, dairy, and alcohol, and to broaden earlier actions. The move imposes 50% Section 338 tariffs on a host of Canadian goods, among them steel columns, pillars, posts, beams, and girders. The White House noted the Section 338 tariffs will stack on top of any applicable Section 232 tariffs. The import ban takes effect Sept. 29, while the other product additions and removals take effect Sept. 15.
The US-based Association of Equipment Manufacturers (AEM) warned that the dispute could affect companies dependent on North American supply chains. AEM Senior Vice President Kip Eideberg said continued uncertainty and higher tariffs are creating serious challenges for manufacturers. The association urged US and Canadian officials to remove the tariffs and preserve the United States-Mexico-Canada Agreement.
The Association of Home Appliance Manufacturers (AHAM) said it “fully supports a strong integrated North American market including a revised USMCA” and will monitor how proposed policies affect appliance manufacturers and consumers.
International trade lawyer Justin Angotti of Reed Smith described the counter-tariffs as the latest escalation in the bilateral dispute. He said businesses on both sides face tariff, compliance, and uncertainty costs while they await further action or de-escalation.
