Canada fights back in Trump's trade war
Specific states, industries targeted by new tariffs
By: Bart Jansen
USA Today
WASHINGTON - Canadian officials say they targeted specific states and industries with retaliatory tariffs - such as those on food products, beverages and appliances - to apply political pressure on the U.S. officials.
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While the growing conflict between Canada and the United States represents a small fraction of the trade between the countries the escalating trade war has already been disruptive.
..... Canada's recent response came after President Donald Trump imposed 50% tariffs on about $20 billion of imports from Canada on august 22, [2026] after the collapse of trade talks a day earlier. Canada responded with "dollar for dollar" tariffs up to 50% on about the same value of imports set to start September 8. [2026]
..... "We're also targeting products that will target states in the U.S.," Melanie Joly, Canada's minister of industry, said while unveiling the retaliatory tariffs August 25. [2026] "We're being wise and strategies to put politician pressure."
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Trump said the same day on social media that "we don't expect to be doing much business with Ontario any longer."
..... The United States exported nearly $334 billion worth of products to Canada in 2025, and its second-largest trading partner sent nearly $382 billion back across the border according to the U.S. trade representative. Both figures represented a drop form 2024 in a year when Trump imposed tariffs on countries around the world.
..... The cross-border dispute is playing out amid a worldwide conflict over tariffs. The Supreme Court overturned Trump's emergency tariffs in February, [2026] but companies are seeking $166 billion in refunds from tariffs collected last year. [2025] Trump has sought to restore the rest f the revenue with fresh tariffs in July [2026] on countries with forced labor.
..... In addition to the new tariffs, Trump vowed t double tariffs on cars and car parts to 50% on January 1, 2027.
..... "Canada has been ripping off the United State of America for years," Trump said August 24 [2026] on social media. "They feel entitled, and yet, WE DON'T NEED CANADA. THEY NEED US!"
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Canada announced tariffs on more than 600 categories if imports that officials said were carefully calibrated to maximize their impact. the duties included a 50% tariff on milk and cream, and 25% on cheese. A 50% tariff was imposed om toilet paper and facial tissue and on the wood pulp used to make it. And a 25% tariff was set on appliances such as stoves, dishwashers, refrigerators and freezers.
..... Wisconsin food processors send more than $1 billion of products to Canada each year, according to the University of Wisconsin. The state exports nearly $670 million worth of dairy products, although they aren't broken out by recipient.
..... Wisconsin governor Tony Evers, a Democrat, said in his weekly radio address August 27 [2026] that the trade war with his state's largest trading partner was "leaving farmers and producers here in America's Dairyland in the lurch."
..... Wood and related products such as paper are popular products heading both directions across the border.
..... Heldi Brock, president of the American Forest & Paper Association, urged both governments back to the negotiating table and said escalating tariff disputes will "disrupt the cross-border supply chains hat help mills and manufacturers invest, compete and deliver essential products people depend on everyday."
..... New counter-tariffs on U.S. goods,including pulp and paper products, risk adding uncertainly and cost for manufacturers, workers, customers and communities on both sides of the border," Brock said.
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Procter & Gamble, an Ohio-based manufacturer of consumer goods such as Charmin toilet paper and Puffs tissues, had warned investors about tariff costs even before Canada's retaliation.
..... Andre Schulten, the company's chief financial officer, told investment analysts April 24 [2026] that the outlook for 2026 was for higher costs from tariffs of about $500 million before tax. The company also expected $150 million in refunds from the emergency tariff that were overturned.
..... Whirlpool Corporation, an appliance manufacturer based in Michigan, has supported trump's tariffs because its products are mostly made in the United States. The company invested $60 million in April [2026] for an Ohio plant that makes washers and dryers.
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Whirlpool CEO Marc Bitzer told investment analysts August 4 [2026] that the company has raised prices to pass along the cost of tariffs and inflation to customers.
..... "We have a real cost, and we pass it on the market," Bizer said. "Keep also in mind that the cost for tariffs for us are lower on a relative basis than for our competitors. So put it differently, our competitors will feel the impact of tariffs significantly more than we do."
..... Canada initially set retaliatory tariffs on seafood, but Joanne Thompson, the minister of fisheries, said August 27 [2026] the category was removed because the industry drives sher country's coastal economy.
..... Senator Susan Collins, R-Maine, thanked Canada for the exemption for her state's signature lobster, but she urged U.S. Trade Representative Jamieson Greer to return to the negotiating table because tariffs on lumber, food, cement and road salt would hurt producers.
..... "I urge the U.S. to respond to this show of good faith from our Canadian friends by returning to the negotiating table and working to amicably resolve this trade dispute," Collins said August 27 [2026] on social media.
..... Canadians largely quit buying U.S. liquor during the trade dispute even without tariffs.
..... Eight of the 10 provinces began boycotting distilled spirits from U.S. suppliers in February [2026] after Trump imposed initial tariffs on Canada. One of the other two - Sasklatchewan - announced August 26 [2026] it would impose 50% tariffs on U.S. spirits as part of the retaliation to the latest tariffs.
..... What had been a $200 million-a-year market has shrunk to $60 million, according to Chris Swonger, CEO of he Distilled Spirits Council of the United States.
..... Likewise, the United States consumers 93% of Canadian liquors, Swonger said.
..... "A 50% tariff is going to be devastating on the Canadian distilled spirits industry," he said.