
The trade conflict between the United States and Canada is set to intensify as Ottawa prepares to impose retaliatory tariffs on billions of dollars’ worth of American imports on Tuesday (local time).
The move will escalate the trade fight with its largest trading ally as tensions between US President Donald Trump and Canadian Prime Minister Mark Carney continue to rise.
The retaliatory tariffs will come into effect at 12:01 am on Tuesday and will apply to products covering C$27.6 billion in imports from the US. The measures will target sectors like steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, industries that have been most affected by US tariffs.
In a statement, the Canadian government said, "Effective September 8, 2026, Canada will impose 15, 25, and 50 per cent tariffs on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with individual product rates based on the matching U.S. rate for the same goods." It added, “Canada’s countermeasures do not apply to US goods that are in transit to Canada on the day on which they come into force.”
| Items | Tariff rate |
|---|---|
| Milk and cream | 50% |
| Whey | 50% |
| Natural honey | 50% |
| Molasses | 50% |
| Malt extract | 50% |
| Perfumes and toilet waters | 50% |
| Beauty or make-up preparations | 50% |
| Preparations for use on the hair | 50% |
| Casein, caseinates and other casein derivatives; casein glues | 50% |
| Albumins | 50% |
| Peptones | 50% |
| Floor coverings of plastics | 50% |
| Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics | 50% |
| Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics | 50% |
| Tableware | 50% |
| Wood charcoal | 50% |
| Plywood | 50% |
| Iron and non-alloy steel in ingots or other primary forms | 50% |
| Semi-finished products of iron or non-alloy steel | 50% |
| Stainless steel in ingots or other primary forms; semi-finished products of stainless steel | 50% |
| Railway or tramway track construction material of iron or steel | 50% |
| Tubes, pipes and hollow profiles | 50% |
| Containers for compressed or liquefied gas, of iron or steel | 50% |
| Chain and parts thereof, of iron or steel | 50% |
| Aluminum articles | 50% |
| Telephone sets, including smartphones | 50% |
| Cooking appliances and plate warmers | 25% |
| Sanitary ware | 25% |
| Wood sawn | 25% |
| Cheese and curd | 25% |
But the trade tensions are not limited to consumer goods and industrial products, with the US President now turning his attention to Canadian aircraft maker Bombardier.
On Monday (local time), Trump threatened to boycott Bombardier's jets in the country as the trade conflict with Canada escalates. In a Truth Social post, he wrote, "NO MORE SELLING BOMBARDIER IN THE UNITED STATES!," and added, "Their products aren’t good enough! Over 50% of their revenue comes from the United States — They live off American Buyers, American Companies, American Airports, and American Service — All while Canada blocks our GREAT American Banks and Companies, throughout the U.S.A.”
According to a Bloomberg report, the Trump administration's decision to bar Bombardier jets could affect American manufacturers in its supply chain. Bombardier said on Monday that it plays a significant role in the US aerospace industry, employing workers across more than 20 states, including Texas, Arizona and Florida. The company manufactures wings for its fastest business jet at a facility in Red Oak, Texas, while producing its flight control components in the Los Angeles area.
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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