Canada will impose retaliatory tariffs of 15%, 25% and 50% on more than 700 categories of U.S. goods from September 8, covering approximately C$27.6 billion of imports. Reporting variously described the package as about US$19.9 billion to US$20 billion, nearly C$28 billion, or $27.6 billion and roughly 8% of U.S. exports to Canada, reflecting different currencies, reference years, percentage bases and rounding. The duties match corresponding U.S. rates dollar for dollar and rate for rate and target steel and aluminum, furniture, clothing, paper, dairy, motorcycles, appliances, seafood, farm equipment and other manufactured goods; many steel and aluminum duties will rise from 25% to 50%, while existing Canadian countertariffs on U.S. automobiles remain. Finance Minister François-Philippe Champagne called the dispute an unprecedented challenge, and Prime Minister Mark Carney said U.S. negotiators "asked too much and offered too little." Ottawa announced C$7.5 billion in support for affected workers and businesses and said tariff-related aid since early 2025 exceeds C$30 billion. Canada’s 10-year government bond yield later fell to about 3.62% after reaching a more than two-year high of 3.76% on August 21, as trade risks weakened the economic outlook and markets reduced expectations for a Bank of Canada rate hike this year despite elevated energy prices adding to inflationary pressure. The measures followed U.S. 50% tariffs on Canadian goods and President Donald Trump’s threat to raise tariffs on Canadian cars, trucks, auto parts and steel to 50% from January 1, 2027, adding pressure to integrated North American supply chains, prices, jobs and the future of USMCA.