Canada Imposes Retaliatory Tariffs of Up to 50% on US Products

Tariffs on US Steel and Aluminum Raised from 25% to 50%

Trump Threatens to Ban Bombardier Aircraft Sales in the US

Standoff Escalates After Talks Collapse; More Retaliation Possible

Canada has begun imposing retaliatory tariffs as high as 50% on US-made products worth approximately $20 billion. Trade tensions between the US and Canada are intensifying after bilateral trade negotiations broke down last month, and after US President Donald Trump threatened to ban Canadian aircraft manufacturer Bombardier from selling its products in the US market.

According to the Canadian government on September 8 (local time), from 12:01 a.m. that day, retaliatory tariffs of 15%, 25%, and 50% took effect on US-made goods worth 27.6 billion Canadian dollars (about $20 billion). The Canadian government explained that this measure was in response to the US imposing tariffs on the same amount of Canadian goods at identical rates starting from August 22.

Hundreds of items are subject to these tariffs, including steel and aluminum, dairy products, home appliances, agricultural machinery, pulp and paper, plastics, and electronics. The tariff rate on US steel and aluminum products has doubled from 25% to 50%. Furniture and clothing are also subject to the highest tariff rate of 50%. Home appliances, dairy products such as cheese, and certain steel and aluminum derivatives are subject to a 25% tariff.

Existing measures, including the 25% retaliatory tariff previously imposed on US automobiles, remain in place. The Canadian government stated that this action is intended to protect domestic workers and manufacturers affected by US tariffs, and to ensure US-made goods can compete fairly within the Canadian market.

This latest round of retaliatory tariffs follows the collapse of trade negotiations between the US and Canada late last month. While both countries came close to a broad agreement on tariff reductions—and President Trump even announced a preliminary deal on the 18th of last month—differences remained unresolved in detailed talks. Since then, each side has blamed the other for derailing the negotiations at the last minute.

Canadian Prime Minister Mark Carney argued that the US made demands that could undermine Canada’s sovereignty and key industries such as automotive, steel, and aluminum, saying his government could not accept them. While Carney said that negotiations could resume if the US is ready, he emphasized that he would not sign any agreement unless it is “sustainable” and guarantees the competitiveness of Canadian industries.

On the previous day, President Trump ramped up the pressure by threatening to push Bombardier out of the US market. He posted on Truth Social saying, “We will no longer allow Bombardier to sell in America,” arguing that the company should manufacture its products locally if it wants to continue operating in the US market.

However, President Trump did not specify any administrative measures or a timeline for actually banning Bombardier’s aircraft sales. While the US government hinted that it may respond to Canada’s retaliatory tariffs with additional tariffs or bans on the import of certain goods, no specific timetable was revealed.

If sanctions against Bombardier are implemented, US companies could also be affected. Bombardier has more than 2,800 suppliers in the US. The wings of its flagship Global 7500 aircraft are manufactured in Texas, avionics in Iowa, and engines in Indiana.

If the tariff war between the two countries continues for an extended period, it is expected that damage will increase, particularly for small and medium-sized enterprises and industries highly dependent on trade, such as automobiles and steel. Oxford Economics has estimated that, taking into account all tariffs announced so far by the US and Canada, as well as Canadian government support measures, Canada’s economic output will decline by about 0.3% from previous forecasts.

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