US-Canada trade dispute spreads to construction equipment

Canada has retaliated against the latest US tariffs with new duties on C$27.6 billion (US$20 billion) of American goods. Photo: Adobe Stock

The official list includes a 15% tariff on buckets, shovels, grabs and grips for construction machinery and other parts for machinery including excavators, loaders and other equipment as well as on bulldozer and angledozer blades.

A 25% tariff will be put on certain boring and sinking machinery parts; 25% on some cranes; 15% on industrial robots, counterbalanced electric and other forklifts, and on various other lifting and material-handling machinery.

“As a result of the United States’ (U.S.) decision to impose a 50% tariff on $27.6 billion of Canadian goods effective 22 August, the Government of Canada will match the U.S. Section 338 tariffs – dollar for dollar,” read the announcement from the Canadian Department of Finance.

“Effective 8 September 2026, Canada will impose 15, 25 and 50% tariffs on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with individual product rates based on the matching U.S. rate for the same goods.”

The new counter-tariffs were announced on 25 August 2026 and will take effect on 8 September 2026.

Overall, they focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs.