Canada announced retaliatory tariffs as high as 50% on hundreds of American products on Tuesday, just days after the collapse of U.S.-Canada trade negotiations led to the Trump administration to impose new tariffs on a wide range of Canadian imports.
The escalating trade war will be felt by businesses paying these tariffs on businesses in both countries, including in New Jersey whose largest trading partner is Canada.
According to the Office of the U.S. Trade Representative, New Jersey companies exported $7.3 billion in goods to Canada in 2025, making Canada the state’s largest export market. In fact, New Jersey sells more than double the goods to Canada than it does to its next largest foreign market, Mexico ($3.4 billion).
The retaliatory tariffs will also affect New Jersey businesses that rely on Canadian suppliers for affected categories of goods. According to a fact sheet produced by the Embassy of Canada in Washington D.C., New Jersey imports $8.3 billion in goods from Canada annually.
Canada’s Department of Finance said it was imposing $27 billion in higher levies effective 12:01 a.m. on Sept. 8 at rates of 15%, 25% and 50% on a wide range of items. The tariffs would match the corresponding U.S. tariff rate on hundreds of products ranging from steel, dairy products, farm equipment, aluminum foil, dishwashers, fish and more.
Products affected by the 50% tariffs include some steel and aluminum products, furniture, and clothing. Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25% tariffs. Existing Canadian counter-tariffs on U.S. auto imports will remain in place at 25%.
President Donald Trump on Monday had threatened to double the U.S. import tariffs on Canadian vehicles, auto parts and steel to 50% if Canada didn’t “fall in line.” On Tuesday, after the Canadian retaliatory tariffs were announced, Trump also threatened to rename Lake Ontario bordering the Canadian province of Ontario and New York State to “Lake America.”
A list of the new tariffs can be found on Canada’s Department of Finance website here.
