The new Canadian tariffs, ranging from 15 to 50%, cover steel, aluminum, furniture, clothing, electronics, and certain agricultural products of the US. The affected goods comprise about 6% of total US exports to Canada.
The move is a retaliation against tariffs the Trump administration imposed on roughly 20 billion USD worth of Canadian goods following the collapse of trade negotiations in late August.
Tensions intensified after President Trump said Canadian aircraft manufacturer Bombardier would be barred from selling planes in the US unless it moved production there.
Bombardier says it currently employs 3,500 workers in the US, works with 2,800 US suppliers, and spends more than 2.5 billion USD annually on its US supply chain.
There are currently no formal trade negotiations between the US and Canada. A cycle of reciprocal tariffs and countermeasures has raised concerns about the stability of the US-Mexico-Canada Agreement (USMCA).
