CANADA HITS $20B OF US GOODS WITH TARIFFS UP TO 50%

🔴 Canada just put tariffs of up to 50% on nearly C$28bn ($20bn) of American goods.

They took effect at midnight Tuesday. Steel. Furniture. Cotton T-shirts. Hundreds of items, on top of existing Canadian taxes on non-CUSMA-compliant American cars and trucks.

Fresh fish and lobster were on the list until the seafood industry pushed back. American-caught lobster is often shipped north to be processed and sent back south to be sold, so the tariff would have hurt Canadian processors as much as US fishermen. Ottawa cut dozens of seafood items.

BBC Business reports talks collapsed in late August and have not resumed. US trade representative Jamieson Greer said the ball is in Canada's court and warned the US could respond by banning imports of some Canadian products. Prime Minister Mark Carney says Canada is ready to sit down when the Americans are.

Trump threatened Monday to halt all US business with Bombardier unless the plane maker moves manufacturing south. A PwC report commissioned by Bombardier put its contribution at over C$7bn of Canadian GDP in 2024.

The damage is already showing. Canada added 181,000 jobs from April to July, then lost around 41,000 in August as new US tariffs landed. US-bound exports fell to 66% of Canada's total, from 75% before the trade war.

The two countries traded nearly $900bn in 2025. The US already taxes Canadian cars and trucks at 25%, plus steel, aluminium and lumber, and added 50% tariffs in late August on dairy, alcohol, hockey sticks and perfume.

Economists say Canadian shoppers pay for this in clothing, food and furniture.

Does Canada keep matching tariff for tariff, or is that a fight it loses?

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