September 8, 2026 : Canada’s new retaliatory tariffs on nearly $20 billion worth of goods imported from the United States took effect on Tuesday, September 8, further increasing trade costs between the two countries and intensifying their long-running trade dispute.
The new tariffs cover products including clothing, cheese, metal components and wood products. Canada decided to impose the measures after trade talks with the United States broke down last month. The move comes after US President Donald Trump imposed tariffs on certain Canadian goods.
The immediate economic impact of the new Canadian tariffs may be limited because the affected products account for a relatively small share of total annual trade between the two countries. However, further escalation of reciprocal tariffs could rapidly worsen the situation, increasing financial pressure on businesses and households in both countries.
Canadian Prime Minister Mark Carney has taken a firm stance against Trump’s trade policies, saying Canada is engaged in a “war” with the United States. Canadian officials have also said Ottawa will impose matching tariffs if Washington introduces additional duties.
Trump and his allies, meanwhile, have criticized Canada’s economy and military capabilities. Trump has threatened to impose additional tariffs on vehicles imported from Canada. On Friday, he also said trade between the two countries could potentially be halted altogether.
The US president has also warned Canadian aircraft manufacturer Bombardier. Hours before the new tariffs took effect, Trump said on social media that Bombardier would no longer be allowed to sell aircraft in the United States. He also urged US consumers to avoid buying certain Canadian products.
Bombardier has said the US aviation industry is an important export sector for the company. It operates facilities producing key aircraft components, including wings, in states such as California and Texas, supporting a large number of jobs across the United States.
Brad Wood, senior director for trade and innovation at the National Foreign Trade Council, said reciprocal tariffs were harmful to businesses and consumers in both Canada and the United States. He said the new measures were creating further barriers to trade between the two countries.
Meanwhile, alongside the dispute with Canada, the Trump administration is preparing to impose new tariffs on goods from several other countries. The United States has accused those countries of producing excessive amounts of goods, which the administration describes as “overcapacity.” Washington argues that this has contributed to persistent trade deficits with those countries.
Under the administration’s plans, the new tariffs could take effect as early as this week. The administration is also exploring alternative tariffs after the US Supreme Court struck down some of Trump’s tariffs in February.
Trump has also threatened to halt trade with countries that export more goods to the United States than they import from it. The United States runs large trade deficits with several countries, including many in Europe and Asia.
Tariffs generally raise the prices of imported goods. As a result, Trump’s global trade war is making efforts to control inflation in the United States more difficult. New US consumer inflation data are due to be released later this week.
The US-Canada trade dispute became publicly more intense in July, when Trump accused Canada of discriminatory treatment toward US industries. He also threatened to impose 50% tariffs on certain Canadian goods unless an agreement was reached within 30 days.
After several months of negotiations, the talks collapsed in August. The United States subsequently imposed tariffs on hundreds of Canadian products, including wine, cheese, clothing and hockey sticks. Canada responded by announcing retaliatory tariffs on similar US products.
The dispute has continued to escalate despite the measures. Trump has repeatedly criticized Canadian political leaders and even issued an executive order seeking to rename Lake Ontario as “Lake America.”
On Sunday, Trump also sharply criticized the exchange rate of the Canadian dollar, saying the current “imbalance” between the Canadian and US currencies would no longer be tolerated.