US-Canada trade war escalates as Canada imposes retaliatory tariffs on American goods

A trade dispute between the United States and Canada intensified as Canada implemented retaliatory tariffs on approximately $20 billion worth of American goods, effective September 8, 2026. These countermeasures, which include duties ranging from 15% to 50%, target a broad array of products such as steel, aluminum, dairy items, cosmetics, and appliances. This action by Ottawa follows new tariffs imposed by the US on Canadian goods on August 22, 2026.

The recent escalation was triggered by Washington's imposition of 50% tariffs on about $20 billion of Canadian products. Concurrently, US President Donald Trump threatened to ban Canadian aircraft manufacturer Bombardier from selling its planes in the United States unless the company increases domestic manufacturing. This threat was made shortly before Canada's retaliatory tariffs came into effect.

Bombardier, however, maintains a significant presence within the US, employing around 3,500 individuals and sourcing from approximately 2,800 American suppliers. This latest round of tariffs and threats marks a further deepening of trade tensions between the two neighboring nations.