Canada's retaliatory tariffs on nearly C$28bn of US goods take effect as trade talks remain collapsed and Trump threatens Bombardier

Canada's counter-tariffs on nearly C$28bn (approximately $20bn / £15bn) of American imports came into effect on Tuesday 8 September 2026, with no immediate prospect of renewed trade negotiations. The measures, described by Prime Minister Mark Carney as a dollar-for-dollar response, cover hundreds of product categories including steel, furniture, cotton clothing, and finished American cars and trucks that do not comply with the USMCA (United States-Mexico-Canada Agreement, also known as CUSMA in Canada), and will be as high as 50% on some goods. Fresh fish and lobster were initially included but subsequently removed after pushback from Canada's seafood industry. Trade talks between the two countries collapsed in late August after Canada walked away from the negotiating table. Carney accused the Trump administration of presenting last-minute terms that were unfair and uneconomic; US officials attributed the breakdown to Canadian political considerations given Trump's unpopularity in Canada. US Trade Representative Jamieson Greer said last week that the ball is in Canada's court and cautioned against retaliation, raising the prospect of further US counter-measures including possible import bans on Canadian products. President Trump also threatened on Monday to halt all US sales by Montreal-based aircraft manufacturer Bombardier unless it moved manufacturing to the United States. Bombardier employs around 3,500 American workers, operates sites across multiple US states, and has approximately 5,100 aircraft operated by US-based customers. The company said its operations create tens of thousands of US jobs but did not directly address Trump's threat. Quebec Premier Christine Fréchette offered the province's full support to Bombardier. Canada's economy had shown some resilience before the latest escalation, with GDP growing in the second quarter and 181,000 jobs added between April and July, but approximately 41,000 jobs were lost in August, coinciding with the breakdown in talks. The US and Canada have the world's largest bilateral trading relationship, valued at nearly in 2025.