Trade War: Canada's retaliatory tariffs take effect as Trump threatens Bombardier

On Tuesday, Canada implemented a series of tariffs on U.S. products in response to the tariffs imposed by Washington in late August, marking a new escalation in a trade war that is already straining relations between the two neighbors.

Ottawa will impose tariffs of 15%, 25%, and 50% on U.S. imports worth approximately $20 billion, including steel, dairy products, electronics, and paper pulp. According to the Canadian government, the amount exactly matches the value of Canadian products affected since August 22 by 50% U.S. tariffs.

Breakdown of negotiations

The conflict escalated on August 21, when Canadian Prime Minister Mark Carney broke off negotiations with the White House. The former central banker accused the United States of trying to impose a "bad deal" with "unfair terms" and of seeking to turn Canada into a "subsidiary" to "destroy" its industry, particularly the automotive sector.

Carney also justified his stance by citing the conditions set by Washington regarding the French language—a politically sensitive issue in Canada—arguing that the draft agreement called into question the status of French-language online media and the requirement for bilingual labeling on products sold in Canada. The White House denied having made this issue a "red line."

Trump puts pressure on Bombardier

Hours before the Canadian tariffs took effect, President Donald Trump threatened to block U.S. sales by Canadian aircraft manufacturer Bombardier.

"NO MORE SELLING BOMBARDIER IN THE UNITED STATES!" he wrote on his platform Truth Social. He claimed that their planes "aren't good enough," that more than half of the company's revenue comes from the United States and that it relies on U.S. buyers, companies, airports, and services, "All while Canada blocks our GREAT American Banks, and Companies, throughout the U.S.A.."

Furthermore, the president accused Ottawa of preventing Gulfstream Aerospace from operating in Canada —"Completely unjust and unfair!"— and concluded: if they want the U.S. market, "they must build here, and stop treating America like a piggybank."

Back in January, Trump had already threatened to revoke the certification of aircraft manufactured in Canada and impose 50% tariffs on all aircraft sold to the U.S., amid a dispute over the certification of U.S. aircraft on Canadian soil

Bombardier defends itself

In a statement Monday, the aerospace company said it creates "tens of thousands of jobs across the United States," with "direct employment" in more than 20 states, including Kansas, Texas, Arizona and California.

It also said it spends more than $2.5 billion a year with suppliers and described its supply chain as "made up of approximately 2,800 American companies across 47 states."

"Bombardier values its great partnership with American companies and its US employees," the company’s statement said.