Economy · Reciprocal dutiesU.S. 50% Tariffs on Canada: Retaliation Hits Sept. 8Aired August 28, 2026 at 6:44 PM UTCWritten September 7, 2026 at 9:22 PM UTCRead the write-upThis storyTranscript · LOADING0:00Washington's 50% tariffs on $20 billion of Canadian goods are already in force.0:05Canada's dollar-for-dollar retaliation lands September 8th, threatening higher0:09prices and jobs.0:10Will a last-minute deal stop the escalation?0:13The U.S.0:14invoked Section 338 of the Tariff Act of 1930 for the first time in the modern era,0:18signing three proclamations on July 20 that hit Canadian goods with up to 50%0:22duties.0:23The tariffs were set to apply August 19th, but talks paused.0:27And when negotiations collapsed on August 21st, 22, the tariffs took effect the next0:32day.0:38Now the two sides are locked in a dollar-for-dollar match.0:48Canada's rates mirror the U.S.0:49levels, 15, 25, or 50%.0:53It also doubles existing tariffs on steel and aluminum to 50%.0:57And it's backing the measures with C $7.5 billion in support for affected workers1:02and businesses.1:03This all happens within a trade relationship worth over $700 billion a year.1:08Canada sends about 72% of its goods exports to the U.S., which imports a third of1:12the paper it uses from Canada.1:14The U.S.1:14duties target $20 billion of Canadian goods, roughly 5% of what Canada sells to the1:20U.S., and about 0.4% of Canadian GDP and jobs.1:42Trump signed the proclamations and the renaming order.1:45Kearney and Champaign announced Canada's response.1:54On August 27th, Trump signed an executive order renaming Lake Ontario to Lake1:59America for U.S.2:00federal use.2:01directing the Interior Department to update maps within 30 days.2:05Canada and New York State rejected the change.2:13The broader economy may feel a modest but real hit.2:16Analysts estimate a 0.2 to 0.3 percentage point drag on Canadian GDP, with2:22inflation rising about 0.3 points.2:25If the dispute escalates, the drag could nearly double by 2027.2:29With no talks scheduled before September 8th, Canada's retaliation is set to strike.2:34The President has threatened further tariffs on autos, steel, and aluminum in2:38January, meaning the dispute could widen.2:40Whether a last-minute deal emerges is unknown.Explore with HeyDexFollow via RSSThe shortThe short ↗