Canada’s retaliatory tariffs kick in on wide range of US goods after breakdown in trade talks

On Tuesday, Canada implemented retaliatory tariffs on billions of dollars worth of US goods, following a breakdown in trade talks. The 15%, 25%, and 50% duties apply to C$27.6 billion in imports from the United States, including steel, aluminium, and certain dairy products. However, Canada removed some seafood products from the initial list.

This move comes weeks after US President Donald Trump imposed 50% tariffs on a similar value of Canadian products, citing "discriminatory treatment" against US industries such as alcohol, automobiles, and dairy. The US tariffs affected about 5.5% of Canadian exports to the United States, impacting items like hockey sticks and cement.

In response, US President Trump threatened to block sales of Bombardier Aviation in the United States unless the Quebec-based plane maker moves manufacturing to the US. Bombardier, which currently operates thousands of aircraft in US airlines' domestic fleets, has touted its creation of tens of thousands of jobs across the United States and spends over US$2.5 billion annually with American suppliers.

Despite the tensions, US officials have acknowledged that French language protections are sensitive and important. Since negotiations between both sides broke down in August, they have continued trading barbs. US Treasury Secretary Scott Bessent stated that the US is not at war with Canada, while Pentagon chief Pete Hegseth mocked the physical appearance of a Canadian soldier on social media.

Canadian Prime Minister Mark Carney criticized the US terms as unacceptable, accusing the Trump administration of introducing restrictions on Canadian trade deals with other countries and making threats against French language and Quebec culture. Canada's government has unveiled an aid package of C$7.5 billion to help businesses and workers amid the ongoing dispute.