The U.S. announced new tariffs affecting Canada as a major trade dispute continues to escalate between the two countries. According to the White House, 50% tariffs will be imposed on Canadian products representing approximately 0.6% of U.S. imports, including outboard motors, metal products, and paper goods.
Simultaneously, the administration waived 50% tariffs on products representing roughly 0.5% of U.S. imports from Canada, such as cement, sugar, toilet paper, and fishing rods.
These measures represent the latest chapter in a trade war that has intensified since Canada withdrew from formal trade negotiations last month. Prime Minister Mark Carney stated that U.S. officials made last-minute demands at the negotiating table that would have undermined Canadian sovereignty.
Despite the escalating tensions, Carney indicated at an investment summit in Toronto on Tuesday that Canada would be prepared to negotiate “a mutually advantageous agreement” on trade if one emerged. He emphasized the need for “clear alignment of interests and a timeline compatible with implementation.”
The conflict began in August when President Donald Trump imposed tariffs on approximately $28 billion worth of Canadian products. Canada responded with retaliatory tariffs on American goods. Trump has also ordered a ban on imports of Canadian-made alcoholic beverages and certain dairy products, set to take effect September 29.
Trump specifically targeted Canadian aerospace manufacturer Bombardier in a September 7 message on Truth Social, claiming Ottawa had delayed certification of new Gulfstream jet models to protect its aviation sector. Trump stated that more than 50% of Bombardier’s revenue comes from the United States and accused Canada of blocking major U.S. banks and companies.
Despite Trump’s criticism, Bombardier CEO Eric Martel told journalists at the Toronto investment summit that the commercial dispute was not hindering the company’s expansion plans. Martel noted that Bombardier employs tens of thousands of workers in the United States and plans additional investment there.
Other Canadian business leaders expressed confidence. Linda Hasenfratz, CEO of manufacturing company Linamar, said the trade war had not impacted operations, noting instead that clients were relocating production from Asia and Europe to North America. She reported record new contracts for the company’s Canadian facilities over the past twelve months.
Matthew Bromberg, president and CEO of Montreal-based flight simulator company CAE, stated that the United States remained its largest market with no observed slowdown in interest and strong continued demand.
Key facts
- The U.S. imposed 50% tariffs on Canadian products worth about 0.6% of imports, including outboard motors and metal goods
- The administration waived 50% tariffs on products representing 0.5% of imports, including cement, sugar, and toilet paper
- Trump previously imposed tariffs on $28 billion of Canadian products in August; Canada responded with retaliatory tariffs
- A ban on Canadian alcoholic beverages and certain dairy products is set to take effect September 29
- Prime Minister Carney said the U.S. made last-minute sovereignty-threatening demands in negotiations before Canada withdrew last month
- Trump accused Canada of delaying Gulfstream jet certification to protect its aviation sector
- Several Canadian business leaders stated the trade conflict has not negatively impacted their operations or expansion plans