Trade Negotiations & Canadian Counter-Tariffs

In my report last week, I mentioned that I, along with the rest of the Official Opposition, was looking forward to seeing what we hoped would be a new and excellent trade deal being finalized between Canada and the United States.

Unfortunately, late last Friday, we learned that this did not happen, as the trade talks collapsed. As is often the case, each side blamed the other for the lack of a trade deal.

Prime Minister Carney had indicated that Canada would respond to any new U.S. tariffs with countermeasures of its own. This week, we learned what that response will look like.

Prime Minister Carney has announced a targeted package of counter-tariffs on select U.S.-manufactured goods imported into Canada. These additional tariffs, ranging from 15%, 25%, and 50%, are scheduled to take effect on September 8. The Government of Canada has described these measures as both "dollar-for-dollar" and "rate-for-rate." In other words, Canada is attempting to match both the overall value of trade affected by the new U.S. tariffs and the tariff rates applied to specific categories of goods. While these measures do not apply to all U.S. imports, the government says they are designed to mirror the U.S. actions in both scope and tariff level.

Regardless of how one views the negotiations, these latest challenges stem from the decision by President Trump and his administration to impose additional tariffs on Canadian goods. Canadians may have differing views on how Canada should respond, but the economic consequences of these measures are likely to be felt on both sides of the border.

The affected products are listed in a lengthy 18-page document and can be found online at the following link:

https://www.canada.ca/en/department-finance/news/2026/08/list-of-products-from-the-united-states-subject-to-counter-tariffs-effective-september-8-2026.html

On a personal note, I believe this is a more prudent course of action by Prime Minister Carney. The problem with tariffs is that, while they are imposed on imported goods, a significant portion of the additional cost is often passed on to consumers through higher prices. As a result, tariffs can contribute to inflation and increase the cost of living for households.

At the same time, tariffs can encourage consumers and businesses to purchase goods made in Canada or imported from countries that are not subject to those tariffs. In this situation, the goal is to discourage purchases of certain U.S. products and encourage buyers to consider alternative suppliers. Over time, that can adversely impact sales for affected American manufacturers while potentially creating new opportunities for Canadian businesses and producers.

I will provide an example. Part of Prime Minister Carney's tariff list includes a 25% tariff on certain appliances, including many stoves, ranges, refrigerators, freezers, laundry machines, and small appliances made in the United States.

However, that same tariff rate would not apply to similar appliances made in South Korea by manufacturers such as Samsung and LG. Likewise, appliances made in Canada would also be exempt. Over the long term, this could adversely impact sales of U.S.-manufactured appliances in Canada.

Of course, the same is true for products manufactured here in Canada and sold in the United States that are subject to President Trump's latest tariff increases. In fact, a recent economic analysis estimates that close to 90,000 Canadian jobs could be lost as a result of the most recent U.S. tariffs on Canadian-produced goods.

Of those 90,000 jobs, more than 10,000 are forecast to be lost in British Columbia. These are very serious numbers. I should also add that these calculations are independent of the federal government.

For the moment, the Government of Canada has not released any estimates on how much it expects these tariffs to cost Canadians. As the Official Opposition, we have asked Prime Minister Carney to reconvene Parliament so that these matters can be discussed transparently on behalf of all Canadians.

Unfortunately, Prime Minister Carney has not accepted this request and has instead indicated that he plans to travel to the European Parliament in Strasbourg, France, in September, where he will meet with European MPs.

My question this week: Do you expect to be impacted by Canadian counter-tariffs? Your feedback helps me do my job. As always, you are welcome to share your thoughts on my Facebook page, by email at Dan.Albas@parl.gc.ca, or by calling toll-free at 1-800-665-8711.