Canada Defies Trump as $27.6 Billion Tariff Retaliation Set to Hit U.S. Goods Tuesday
Canada is moving ahead with a sweeping new round of retaliatory tariffs on American products beginning Tuesday, escalating its trade confrontation with the United States despite continued pressure from President Donald Trump to reach an agreement.
The Canadian government says the countermeasures will take effect at 12:01 a.m. on Sept. 8 and will apply to $27.6 billion worth of goods imported from the United States.
Depending on the product, the new duties will be 15%, 25% or 50%, with Ottawa matching the corresponding U.S. tariff rates. Among the industries affected are steel and aluminum, dairy products, household appliances, agricultural equipment, pulp and paper, plastics and electronics.
Ottawa announced the retaliation after negotiations with the Trump administration collapsed. Canadian officials said Washington presented new terms that they considered unacceptable and potentially damaging to Canadian workers, businesses and key industries, prompting Canada to suspend the negotiations rather than accept the proposed agreement.
Canada is therefore proceeding with its countermeasures despite repeated warnings from Trump that additional economic consequences could follow if Ottawa and Washington fail to resolve their differences.
The latest dispute intensified after the Trump administration imposed a 50% tariff on $27.6 billion in Canadian products beginning Aug. 22. Canada subsequently announced that it would answer the American duties “dollar for dollar” and “rate for rate.”
Trump applied additional pressure Monday by targeting Canadian aircraft manufacturer Bombardier, saying the company should be prevented from selling its planes in the United States unless it moves manufacturing operations to American soil.
The White House did not immediately provide details about how such a restriction on Bombardier would be carried out, according to Reuters. Trump has previously raised the prospect of additional action against the Canadian aircraft manufacturer, including imposing tariffs on its planes.
The president has also continued taking public jabs at Canada amid the deteriorating trade relationship, including through his decision to rename Lake Ontario “Lake America” for U.S. federal purposes.
Trump directed federal agencies to adopt “Lake America” as the U.S. name for the body of water, and major digital mapping services have since displayed that name to users in the United States. Canadian officials have rejected the change and continue referring to the lake as Lake Ontario.
Trump has also repeatedly directed criticism at Ontario Premier Doug Ford as tensions between the two neighboring countries have mounted.
Canadian Prime Minister Mark Carney, meanwhile, has maintained that his government remains prepared to negotiate with Washington, while insisting that Canada will not agree to conditions it considers harmful to its interests.
Ottawa has also unveiled $7.5 billion in new and expanded assistance for Canadian businesses and workers affected by the tariff battle, adding to billions of dollars in previously announced support.
For the moment, however, the retaliatory measures remain on schedule.
Barring an eleventh-hour breakthrough between Washington and Ottawa, Canada’s new tariffs on American goods will go into effect at 12:01 a.m. Tuesday.
