Canada will impose new tariffs on roughly $20 billion worth of U.S. goods beginning Sept. 8, adding another layer of costs and uncertainty for businesses that rely on trade between the two countries.

The new tariffs, announced Aug. 25, range from 15 percent to 50 percent and will apply to a broad range of U.S. imports. Additionally, existing Canadian counter-tariffs, including those on U.S. automobiles, will remain in place.

Products affected by the new tariffs include: Steel and aluminum products; appliances and household goods; dairy products; agricultural equipment; paper products; electronics; and clothing and apparel.

The Canadian action follows the breakdown of trade negotiations between the United States and Canada earlier this summer.  The Trump administration imposed new 50 percent tariffs on Canadian goods effective Aug. 22 after the talks failed to produce an agreement.

Canada is Pennsylvania’s largest export market, with Pennsylvania businesses exporting $13.4 billion in goods there in 2025, or roughly 27 percent of the state’s total exports. Pennsylvania also imported approximately $13.4 billion in Canadian goods last year.

An analysis by the Philadelphia Inquirer found that about $2 billion, or 16 percent, of Pennsylvania’s 2025 exports to Canada will be subject to the new tariffs.

The impact could also extend beyond businesses that export directly to Canada. The United States and Canada have closely connected supply chains in industries including manufacturing, agriculture, energy, and automotive production. Additional tariffs can raise costs for businesses that rely on Canadian suppliers or components.

Canadian officials say the new tariffs are intended to match the scope and rates of the new U.S. tariffs.

The new tariffs add to a broader series of U.S. and Canadian trade measures over the past two years. With negotiations reportedly stalled, the new trade barriers could increase costs for Pennsylvania producers and decrease their competitiveness in Canadian markets, affecting a key trade relationship for the Commonwealth.