Canada Imposes $20 Billion in Tariffs as Trump Threatens Bombardier

Canada imposed retaliatory tariffs on approximately $20 billion worth of US goods Tuesday, escalating a trade dispute that threatens to raise prices and affect sales and jobs on both sides of the border.

The tariffs, ranging from 15% to 50%, respond to the 50% duties President Donald Trump imposed on Canadian products after trade negotiations failed, according to EFE.

• Why it matters: The dispute is no longer limited to decisions made by the two governments. US companies could lose competitiveness in Canada, while Canadian consumers could face higher prices.

Canada Tariffs of Up to 50% Hit US Goods

The retaliatory measures affect US imports valued at 27.6 billion Canadian dollars, equivalent to approximately $20 billion.

• Affected products include steel, aluminum, appliances, furniture, tools, electronics, cosmetics, and food.
• Milk and cream face 50% tariffs, fresh cheeses face 25% tariffs, and numerous steel and aluminum products face another 50% levy.

Prime Minister Mark Carney acknowledged that the countermeasures could increase some prices and reduce options for Canadian consumers but defended the “dollar-for-dollar” response.

US manufacturers face a different risk: Higher import costs could make their products less competitive in Canada and put pressure on sales.

Trump Threatens Bombardier but Faces Republican Resistance Over US Jobs

Hours before the new tariffs took effect, Trump opened another front by demanding on Truth Social that Bombardier stop selling aircraft in the US.

“NO MORE BOMBARDIER SALES IN THE US!” Trump wrote, accusing Canada of blocking US companies and demanding that the manufacturer produce its aircraft in the United States if it wants access to the market.

The threat, however, prompted opposition from within the Republican Party.

According to NBC News, Republican Senator Jerry Moran of Kansas defended Bombardier. The company has its US headquarters in Kansas and says it employs approximately 3,500 workers in the United States, in addition to operating more than 20 facilities.

The episode highlights a paradox in the escalating US-Canada trade war: A measure intended to pressure a Canadian company could ultimately affect US operations and jobs.

US President Donald Trump warns that plane manufacturer Bombardier will not be able to sell in the US unless it starts manufacturing its products in this country.https://t.co/CXU2weyh0k

— EFE Noticias (@EFEnoticias) September 7, 2026

Canada Prepares Billions to Ease the Impact

Ottawa also announced 7.5 billion Canadian dollars in assistance for workers and businesses affected by the US-Canada trade war.

Meanwhile, no last-minute talks took place to prevent the new tariffs, and formal negotiations have remained suspended since August 21.

• Carney says Canada is prepared to return to the negotiating table when Washington adopts a “serious” approach.

The combination of tariffs, retaliatory measures, and business threats therefore increases the risk that the dispute’s costs will ultimately spread from the border to companies, workers, and consumers.