Canada imposes tariffs on $20 billion in US imports as trade dispute escalates

Ottawa, Canada. Canada imposed new tariffs on about $20 billion worth of US imports on Tuesday, escalating a trade dispute that has strained relations between the neighbouring countries. The measures match tariffs imposed by US President Donald Trump after trade negotiations between Washington and Ottawa broke down last month.

Products affected

The duties apply to products including clothing, cheese, metal parts and wood goods. They affect only a small proportion of trade between Canada and the United States.

Canadian officials said further retaliatory measures could follow if Washington raises its tariffs. Prime Minister Mark Carney has described Canada as being “at war” over the dispute, while officials have pledged to respond to US tariffs on a dollar-for-dollar basis.

Trump criticism and Bombardier response

Shortly before the Canadian duties took effect, Trump criticised Canada and targeted Canadian aircraft manufacturer Bombardier on social media, declaring: “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!”

Trump also accused Canada of preventing US banks and companies from operating in the country and urged US consumers to avoid Canadian products.

Bombardier rejected the criticism, saying its aerospace products were among the leading US exports. The company said it manufactures major components, including wings, in California and Texas, and that its operations support large numbers of jobs in the United States.

Talks collapse

The dispute became public in July, when Trump accused Canada of discriminating against US industries and threatened tariffs of up to 50 per cent on selected Canadian goods unless an agreement was reached within 30 days.

Negotiations continued through August, with Trump at times indicating that an agreement was close. The talks ultimately collapsed, with both governments blaming the other for the failure.

Washington subsequently imposed tariffs on hundreds of Canadian imports, including wine, cheese, clothing and hockey sticks. Canada announced retaliatory measures after Labor Day, with Tuesday’s tariffs fulfilling that pledge.