Canada's retaliatory tariffs hit US products as Trump warns of escalation

(ABC NEWS)– Retaliatory tariffs issued by Canada hit some imports from the United States at one minute after midnight Eastern Time on Tuesday, intensifying a trade war between the longtime allies and risking an escalation from President Donald Trump. Levies as high as 50% apply to hundreds of U.S. products, ranging from aluminum foil to raincoats to cheese. U.S. elected officials in states bordering Canada, including Republican Sen. Susan Collins of Maine, have warned the trade dispute will hurt local businesses and consumers. Canadian officials said the retaliatory measure would target about $20 billion worth of U.S. products, mirroring the size of a recent batch of U.S. levies. The targeted goods amount to nearly 6% of annual U.S. exports to Canada, according to U.S. Census Bureau data for 2025. A tit-for-tat trade war erupted last month after official negotiations collapsed and a fresh round of U.S. levies took hold. Within days, Canadian officials announced what they described as matching tariffs that would begin in the second week of September. The Canadian tariffs target many products included in a batch of U.S. levies last month.