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Canada imposed retaliatory tariffs of up to 50% on $20 billion worth of US goods

Canada has put into effect retaliatory tariffs of up to 50% on roughly 700 American goods worth about $20 billion. The measures were a response to 50% US tariffs on Canadian products imposed after trade talks collapsed. US President Donald Trump also threatened to restrict Bombardier sales and predicted Canada's economic collapse.

5 events in story10 sourcesVerified · 15/23 claims supported
Canada imposed retaliatory tariffs of up to 50% on $20 billion worth of US goods
Photo: Yahoo Finance

Sources

· 10

Key points

  • US President Donald Trump threatened to ban Bombardier aircraft sales in the US unless production is moved there and predicted Canada's economy would collapse under Mark Carney.
  • Canadian Prime Minister Mark Carney said negotiations with the US had stalled but left the door open for dialogue.

What happened

Canada imposed retaliatory tariffs of up to 50% on roughly 700 American goods worth about $20 billion. The tariffs took effect on Tuesday at 12:01 a.m. Eastern Time, doubling levies on American steel and aluminum to 50%.

US President Donald Trump said on Monday that Canada's Bombardier will no longer be able to sell aircraft in the US unless it starts producing them on American soil. He accused the company of treating America like a "piggy bank" and claimed that more than half of its revenue comes from American buyers. Trump also wrote that Canada's economy could collapse under Prime Minister Mark Carney.

Why it matters

The escalation was a response to the US invoking Section 338 of the Tariff Act of 1930, which had never been used before July 2026. The current conflict threatens American consumers, companies and midterm elections.

What changed

The US had previously imposed 50% tariffs on about $20 billion worth of Canadian goods after three days of trade talks collapsed. Now those measures have taken effect, and Prime Minister Mark Carney said he is in no rush to resume negotiations with Washington.

Who's affected

The trade war has hit Ontario's manufacturing sector hardest, where tens of thousands of jobs have been lost since the start of 2025. Industry analysts note that planned additional US tariffs could force Toyota and Honda to close some Canadian assembly lines.

Previously

  • The US imposed 50% tariffs on $20 billion of Canadian imports, including wine, furniture, dairy products, cement, clothing and hockey equipment.
  • President Donald Trump threatened additional 50% tariffs on Canadian imports starting January 1, 2027.

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