Canada imposes retaliatory tariffs on U.S. as Trump warns escalation

Canada has fired back at the United States with a new round of tariffs after trade talks between the longtime allies collapsed. The latest Canadian levies, reaching as high as 50%, hit hundreds of American products beginning just after midnight Tuesday. The move escalates an already bitter trade fight and raises the prospect of another response from President Donald Trump. Canada hits $20 billion worth of U.S. goods 🚨 JUST IN OVERNIGHT: Canada is lashing out at President Trump and 15-50% TARIFFS took effect after midnight on $20 billion worth of U.S. goods After mistreating America for decades, Canada is acting like a spoiled brat because President Trump FINALLY stood up and told them… pic.twitter.com/hvwjgR1JfY — Eric Daugherty (@EricLDaugh) September 8, 2026 The new tariffs target roughly $20 billion worth of American products, according to Canadian officials. Items facing the duties include aluminum foil, raincoats and cheese. Fresh fish and lobster were initially included but later removed following pressure from Canada's seafood industry. Canada's steep retaliatory tariffs on $20 billion in U.S. goods took effect just after midnight ET on Tuesday, extending the trade war between the two countries. https://t.co/2OaWxPt38O — CBS Evening News with Tony Dokoupil (@CBSEveningNews) September 8, 2026 The targeted goods represent nearly 6% of annual U.S. exports to Canada, based on 2025 U.S. Census Bureau data. The latest measures come on top of Canadian tariffs already imposed on certain American cars and trucks that do not comply with the United States-Mexico-Canada Agreement. Canada's Prime Minister Mark Carney has described the new measures as 'dollar-for-dollar' retaliation. Trump turns up the heat on Canada Donald Trump criticized Canada's exchange rate with the United States and posted a map showing Canada, Mexico and Greenland covered with the American flag. BY: MEGA Trump has shown no sign of backing away. On Monday, he threatened Bombardier, the Canadian private jet manufacturer, saying the company would be barred from selling aircraft in the United States unless it moved production south of the border. 'NO MORE SELLING BOMBARDIER IN THE UNITED STATES!' Trump wrote on Truth Social. 'If they want our Market, they must build here, and stop treating America like a 'piggybank',' he added. Trump has also criticized Canada's exchange rate with the United States and posted a map showing Canada, Mexico and Greenland covered with the American flag. Earlier this week, Trump talked about the heap of trouble that could be avoided by not trading with Canada, amounting to $60 billion to $90 billion a year. "If we didn't want to trade with Canada, we'd save from $60 to $90 billion a year just by not trading with Canada. Now, Canada would be in a heap of trouble. I don't think they'd exist. They do 95% of their business with us," said the President in a briefing on September 5. Trump: "If we didn't want to trade with Canada, we'd save from $60 to $90 billion a year just by not trading with Canada. Now, Canada would be in a heap of trouble. I don't think they'd exist. They do 95% of their business with us." pic.twitter.com/y0FIrfW4cR — Scott Robertson (@sarobertson_) September 4, 2026 The latest confrontation follows a sharp deterioration in negotiations. U.S. Trade Representative Jamieson Greer said Canada had rejected what Washington considered its best offer. 'We offered them the best deal, they looked at it square in the face and turned around,' Greer told Fox News. Carney has offered a different tone, saying Canada remains willing to return to negotiations. 'We're ready to sit down and strike that deal when the Americans are ready,' he said. Canadian businesses brace for a longer trade war Mark Carney has also vowed to reduce Canada's dependence on the U.S. market. BY: MEGA The United States and Canada have a bilateral trading relationship worth nearly $900 billion, making the stakes enormous for companies and consumers on both sides of the border. The U.S. currently has a 25% tariff on Canadian cars and trucks, along with duties on Canadian steel, aluminum and lumber. Trump also imposed 50% tariffs on additional Canadian products in late August, including dairy, alcohol, hockey sticks and perfume. Canadian economists have warned that retaliation could push up prices for everyday products such as clothing, food and furniture. The Canadian Chamber of Commerce has urged Ottawa to keep its response targeted. 'Businesses understand retaliation but don't want to see endless escalation,' President and CEO Candace Laing said, per BBC. Canada's economy had shown signs of strength before the latest escalation, with GDP growing 3.3% in the second quarter and 181,000 jobs added between April and July. However, the country lost about 41,000 jobs in August. Carney has also vowed to reduce Canada's dependence on the U.S. market. By July, the share of Canadian exports headed south had fallen to 66%, compared with an average of about 75% before the trade war.