Canada imposed tariffs of up to 50% on about $20 billion in U.S. goods early Tuesday, after it walked away from trade talks with Washington last month. Hundreds of American products now face the new duties.
The tariffs took effect at 12:01 a.m. ET, with rates ranging from 15% to 50% on products including steel, furniture, clothing and electronics. Canada said the tariffs match the latest U.S. measures dollar for dollar and rate for rate.
Prime Minister Mark Carney suspended negotiations after the two governments failed to reach a deal, saying Canada could not accept the terms Washington had offered.
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Canada imposes retaliatory tariffs
President Donald Trump imposed new tariffs on Canadian products in August. Carney responded by announcing the tariffs that took effect Tuesday.
“We made the right decision to suspend our trade negotiations with the United States,” Carney said last week. “We couldn’t accept what they’d offered, we wouldn’t give what they’d asked.”
Carney said the U.S. tariffs were “designed to hurt and divide us.”
Much of the trade between the two countries remains duty-free under the U.S.-Mexico-Canada Agreement. The broader trade pact is now subject to annual reviews after Trump declined to extend it, Reuters reported.
Trump threatens Bombardier
Trump has said Canada will face additional U.S. retaliation measures. On Monday, he focused on Montreal-based Bombardier, threatening to bar the company from selling planes in the United States unless it begins manufacturing them there.
“NO MORE SELLING BOMBARDIER IN THE UNITED STATES!” Trump wrote on Truth Social. “If they want our Market, they must build here.”
Trump accused Canada of blocking American companies from its market and specifically cited Gulfstream Aerospace.
Bombardier employs about 3,500 people in the United States and works with 2,800 U.S. suppliers. The company says it spends more than $2.5 billion with those suppliers each year.
Trump has threatened restrictions on Bombardier before. In January, he said the U.S. would decertify the company’s Global Express business jets and impose 50% tariffs on Canadian-made aircraft unless Canada certified several Gulfstream planes.
Neither happened. Canada certified several Gulfstream aircraft the following month.
Trade talks remain suspended
Canada sends roughly two-thirds of its exports to the United States.
The two governments are not currently negotiating a new agreement. Trump has also threatened 50% tariffs on Canadian-made cars and auto parts beginning in January.