Effective Tuesday, Canada imposed retaliatory duties on an estimated $20 billion of U.S. imports, with some reports citing the figure as high as $27.6 billion. The tariffs, which range up to 50 percent, target more than 700 products across sectors such as steel, aluminum, dairy, cosmetics and sporting equipment, marking the most extensive counter‑measure since the 2018 dispute.

Scope and Sectors Affected

According to the BBC and Al Jazeera, the new duties mirror the United States’ earlier 50 percent tariffs on Canadian goods, applying to commodities including milk, perfume, golf clubs and a variety of industrial inputs. CNBC highlighted that duties on U.S. steel and aluminum have been doubled to 50 percent, while France 24 noted the inclusion of automotive parts and consumer electronics. The broad reach aims to pressure Washington in ongoing trade negotiations that have stalled, as reported by The Detroit News.

Watch: U.S. President Trump threatens to block Bombardier sales as Canada’s retaliatory tariffs take effect — CTV News

Political Context and Government Statements

Canadian Finance Minister Chrystia Freeland told parliament that the measures are a “necessary response” to protect Canadian producers from what Ottawa calls “unfair” U.S. trade practices, a sentiment echoed by the Bank of Canada’s governor, who warned of a “prolonged trade war” in a BBC interview. The Treasury Board announced that the tariffs will be reviewed after 90 days, but the government signalled no intention of reversing them without a reciprocal move from Washington.

Bombardier BD-700-2A12 Global 7500 (9H-VIG, cn 70086) (1-19-2023)
Bombardier BD-700-2A12 Global 7500 (9H-VIG, cn 70086) (1-19-2023) (Image: Wikimedia Commons)

"Bombardier must build its planes in the United States or it will lose access to the American market," the President said, according to Reuters.

Bombardier and the Threat of a U.S. Ban

President Donald Trump announced that the Canadian aircraft maker Bombardier could be barred from selling its jets in the United States unless it relocates production to American soil. The claim was reported by multiple outlets, including the BBC, Sky News and The New York Times. Bombardier’s chief executive responded by emphasizing the company's existing U.S. footprint, noting that a significant portion of its supply chain and final‑assembly operations are already based in the United States, as cited by CNBC and Forbes.

U.S. lawmakers, however, have shown mixed reactions. NBC News reported that a GOP senator publicly pushed back against the proposed ban, arguing that it could hurt American jobs tied to Bombardier’s current U.S. facilities. Meanwhile, President Trump reiterated a “Buy American” stance, targeting products used by affluent consumers, a narrative highlighted by Newsweek and the Financial Times.

Donald Trump
Donald Trump (Image: Wikimedia Commons)

The escalation follows a series of American tariffs announced in late March, which imposed a 50 percent levy on a range of Canadian goods, including lumber and dairy, as detailed by The Guardian and The New York Times. Trade talks between the two countries have stalled, with the United States warning of a further round of duties if Canada does not roll back its measures, according to The New York Times and BBC.

Analysts caution that the tit‑for‑tat approach could ripple through North American supply chains, raising costs for manufacturers and consumers on both sides of the border. The International Trade Centre warned that the dispute could undermine the stability of the world’s largest bilateral trading relationship, a concern echoed across the coverage. As both governments brace for a potentially protracted confrontation, the next steps will likely hinge on whether diplomatic channels can bridge the widening gap before the tariffs take a heavier toll on the economies of Canada and the United States.