Canada to Impose Up to 50% Retaliatory Tariffs on U.S.; Trump Threatens "Ban on Bombardier Sales" (Comprehensive)

"If You Want Access to the U.S. Market, You Must Manufacture Locally"


Canada to Impose Up to 50% Tariffs on U.S. Products Starting September 8

As Canada has decided to impose retaliatory tariffs of up to 50% on U.S. products, U.S. President Donald Trump has threatened to ban the sale of Canadian aircraft manufacturer Bombardier's planes in the United States. With retaliatory measures following the collapse of tariff negotiations between the two countries, trade tensions between the United States and Canada are escalating.

Former U.S. President Donald Trump's Truth Social

According to Bloomberg and other sources on September 7 (local time), President Trump posted on Truth Social that "Bombardier will no longer be able to sell in the United States," and added, "Their product quality is not sufficient."

He claimed that more than 50% of Bombardier's revenue comes from the U.S. and criticized, "They rely on American buyers, companies, airports, and services to survive."

He went on to point out that Canada blocks U.S. banks and companies from entering its market and also bars operations of U.S. aircraft manufacturer Gulfstream in Canada, saying, "It is completely unreasonable and unfair. That era is over."

President Trump insisted, "If they want to access our market, they must manufacture in the United States and stop treating America like a 'piggy bank'," urging, "Buy American products and use American airlines."

However, President Trump did not disclose whether any administrative measures would be taken or if additional tariffs would be imposed to actually ban Bombardier aircraft sales in the United States. The White House also did not offer a specific stance on implementation plans.

Previously, President Trump claimed that Canada was blocking certification for U.S.-made Gulfstream aircraft and threatened to revoke certification for Bombardier planes and impose a 50% tariff. However, those measures were not actually put into effect at that time.

If sanctions against Bombardier become a reality, U.S. manufacturers could also suffer. Eric Martel, CEO of Bombardier, stated last year that the company has over 2,800 partner firms in 47 U.S. states.

According to Bloomberg, the production cost of Bombardier's business jet, the Global 7500, is linked to manufacturing in the U.S. for more than half of the total. The wings are produced in Texas, avionics in Iowa, and engines in Indiana, with final assembly and finishing taking place in Canada.

Canada to Impose Retaliatory Tariffs on the U.S.

President Trump's threat came on the eve of Canada's implementation of retaliatory tariffs. Starting September 8, the Canadian government will impose 15%, 25%, and 50% tariffs on U.S. products worth 27.6 billion Canadian dollars (approximately 20 billion U.S. dollars), including steel, aluminum, dairy products, home appliances, agricultural machinery, pulp and paper, and electronics.

For many U.S. steel and aluminum products that previously faced a 25% retaliatory tariff, the rate will be increased to 50%. Furniture and clothing will also face a 50% tariff, while dairy products such as cheese and home appliances will be subject to a 25% tariff. Consumer goods such as motorcycles and cosmetics are also included on the list.

This measure is in response to the U.S. imposing a 50% tariff on Canadian products worth 27.6 billion Canadian dollars starting on August 22. The Canadian government designed its retaliatory tariffs to mirror the U.S. in terms of "dollar for dollar, rate for rate" based on the amount of money and tariff rates.

The United States and Canada held negotiations last month to ease trade tensions and came close to a tentative agreement, but failed to bridge final differences. On August 18, President Trump announced a provisional agreement between the two countries and gave three days to finalize the details, but negotiations ultimately broke down.

Canada argued that the U.S. made demands that could infringe on its sovereignty and key industries such as automobiles and medium-to-large trucks. Meanwhile, the U.S. criticized Canada for scuttling the deal for domestic political reasons and warned of additional tariffs and potential import bans on some Canadian products.

Canadian Prime Minister Mark Carney has left the door open for further negotiations but maintains he will not sign any deal that does not guarantee the competitiveness of his country's automotive, steel, and aluminum industries. He stated, "When the United States is ready, we are prepared to sit at the negotiating table and reach a sustainable agreement."

This content was produced with the assistance of AI translation services.