The Trump administration announced a ban on imports of Canadian dairy products, most alcoholic beverages and motorcycles, escalating a trade dispute.
The latest Canadian tariffs on $20 billion of U.S. exports went into effect Tuesday. A handful of U.S. states are likely to feel a big effect.
Canada imposed tariffs of up to 50% on hundreds or products from the US as Prime Minister Mark Carney bets that standing up to President Donald Trump will help with Ottawa's negotiating position. It's not clear how the US will respond to this move yet.
President Donald Trump threatened to ban Bombardier aircraft sales on Truth Social just hours before Canada's retaliatory tariffs hit $20 billion in U.S. goods.
Canada has introduced and raised tariffs on $27.6 billion worth of U.S. goods, including dairy, agricultural equipment, paper, household appliances and electronics. U.S. steel, aluminum and iron products, furniture and clothing were hit with the highest rate of 50%.
Canada's retaliatory tariffs on U.S. goods took effect just after midnight on Tuesday as Prime Minister Mark Carney increased economic pressure on his country's biggest trading partner after negotiations collapsed last month, intensifying an 18-month-old trade war.
Canada is rolling out up to 50% tariffs on a wave of US imports on Tuesday. The levies will impact hundreds of US goods, including cheese, honey, aluminum foil, and more.
The central bank left its main interest rate unchanged at 2.25%, and said the escalating trade conflict between the U.S. and Canada threatens to add to inflation.
The Bank of Canada is widely expected to keep its main interest rate unchanged on Wednesday as policymakers assess the fallout from a stark deterioration in Ottawa-Washington trade ties.
Over the summer, tensions between the U.S. and Canada have continued to ratchet up over trade. President Donald Trump announced in July that in 30 days, he would be slapping a large swath of Canadian goods–including wine, dairy, cement, furniture, and ice hockey gear–with a 50% tariff.
Just three months after New York Governor Kathy Hochul announced the opening of Champlain Hudson Power Express (CHPE), a $6 Billion project to bring hydropower from Quebec to the New York City metropolitan area, the breakdown in overall trade talks between the United States and Canada have put the energy to be supplied at risk.
Honey, cosmetic and other exporters now face 50% levies.