Canada imposes formal retaliatory tariffs or countermeasures in response to US 35% surcharge (effective August 1, 2026) by August 15, 2026

Canada imposed no new formal counter-tariffs specifically in response to the US 35% tariffs effective August 1, 2026. Despite maintaining existing retaliatory measures on steel, aluminum, and automobiles from earlier escalations, Canada refrained from announcing any new retaliatory measures between August 1–15. The key inhibitor: Trump's executive order explicitly warned that any Canadian retaliation could cause the US to 'increase or expand in scope' its tariffs — a credible deterrent given that the US simultaneously threatened 50% Section 338 tariffs on ~$20 billion of Canadian goods (scheduled August 19). Instead of retaliating to the 35% tariffs, Canada focused on negotiations: PM Carney spoke with Trump multiple times that week, and on August 14 US Trade Rep Greer publicly demanded Canada lift its *existing* retaliatory measures to avoid the new 50% duties (Bloomberg, CTV News, August 14, 2026). The historical retaliation pattern held for earlier tariffs (steel/aluminum/autos), but broke for the August 1 35% tariffs due to the explicit escalation threat and the looming August 19 deadline creating a negotiating dynamic that superseded tit-for-tat retaliation.