Tuesday 15 September 2026
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Canada's retaliatory tariffs on US goods take effect as trade war intensifies

No deal in sight as both sides trade accusations and President Trump threatens further action

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By LineZotpaper
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Canada's counter-tariffs on nearly C$28 billion ($20 billion) worth of US products came into force on Tuesday, with no progress toward resolving a deepening trade war that now hits steel, furniture, clothing and hundreds of other goods. Prime Minister Mark Carney said Ottawa is ready to negotiate a 'durable' deal, but US trade representative Jamieson Greer insisted the ball remains in Canada's court.

The retaliatory measures, described by Carney as 'dollar-for-dollar,' apply tariffs as high as 50% on a wide range of American imports. The list initially included fresh fish and lobster, but Canada removed those items after pushback from its seafood industry—underscoring the delicate balance the government must strike as it hits back at its largest trading partner.

The tariffs are layered atop existing Canadian retaliatory taxes on finished US cars and trucks that do not comply with the US-Mexico-Canada Agreement. They come in response to US tariffs imposed earlier this year, including a 25% tax on Canadian cars and trucks, taxes on steel, aluminum and lumber, and 50% tariffs on dairy, alcohol, hockey sticks and perfume announced by President Donald Trump in late August.

'We're ready to sit down and strike that deal when the Americans are ready,' Carney told reporters last week. But US trade representative Jamieson Greer struck a different tone in an interview with Fox News, saying, 'We offered them the best deal, they looked at it square in the face and turned around.' Greer added that there has been sparse communication with Canadian officials since talks collapsed in late August.

Trump escalated the rhetoric over the weekend with a series of Truth Social posts. He called Canada's exchange rate with the US 'unacceptable' and shared a map that showed North America—including Canada and Mexico—along with Greenland overlaid with the US flag. He also threatened to halt all US business with Canadian plane maker Bombardier unless it moves its manufacturing south. Bombardier is one of Canada's largest companies, contributing over C$7 billion to annual GDP in 2024, according to a PwC report commissioned by the firm.

'The US currently has in place a 25% tax on Canadian cars and trucks, as well as taxes on Canadian steel, aluminium and lumber. In late August, President Donald Trump imposed new 50% tariffs on other goods like dairy, alcohol, hockey sticks and perfume.'

Both sides say they want a deal, but no movement has been made to resume negotiations. The US-Canada trading relationship, valued at nearly $900 billion in 2025, is the world's largest bilateral trade partnership, and businesses on both sides of the border are scrambling to adapt to the new tariff regime.

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Analysis

Why This Matters

  • The tariffs directly raise prices on hundreds of consumer goods, from clothing to furniture, affecting households in both countries.
  • The trade war threatens deeply integrated supply chains, particularly in auto manufacturing, aerospace and agriculture.
  • Without a deal, further escalation—including potential US bans on Canadian products—could inflict lasting economic damage.

Background

The US-Canada trade war began in earnest earlier this year when President Trump imposed 25% tariffs on Canadian cars and trucks, along with taxes on steel, aluminum and lumber. Canada retaliated with its own tariffs, and the conflict escalated in late August when Trump added 50% tariffs on dairy, alcohol, hockey sticks and perfume. Negotiations collapsed in August, and both sides have since traded accusations while maintaining that they ultimately seek a resolution.

Key Perspectives

Canada (Prime Minister Mark Carney): Ottawa wants a 'durable' deal that serves both countries' interests and is ready to negotiate when the US is willing. United States (Trade Representative Jamieson Greer): The ball is in Canada's court; Washington offered its 'best deal' and was rebuffed. Greer has hinted at possible bans on Canadian imports. Businesses & Industry: Companies on both sides face disrupted supply chains and higher costs. Canadian seafood producers successfully lobbied to be removed from the tariff list, while Bombardier faces a direct threat from Trump's demands.

What to Watch

  • Whether the US imposes new retaliatory measures, such as banning specific Canadian imports as Greer suggested.
  • The fate of Bombardier's manufacturing operations amid Trump's threat to halt all US business with the company.
  • Any signs of resumed negotiations; Carney has expressed openness, but Greer says communication has been sparse.

Sources

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Articles published under the Zotpaper byline are synthesized from multiple source publications by our AI editor and reviewed by our editorial process. Each story combines reporting from credible outlets to give readers a balanced, comprehensive view.

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