Trade War With Canada Escalates As New Tariffs Launch

Canada’s retaliatory tariffs on U.S. goods took effect Tuesday, raising tensions in a fast-escalating trade fight with President Donald Trump’s administration. Canadian officials said nearly $28 billion in American exports now face tariffs up to 50%, matching Trump’s levies imposed last month on Canadian goods. The measures target 629 product lines, including paper and lumber from Maine, vehicles from Michigan, and dairy from Wisconsin—states with competitive November midterm elections. The dispute is about 5% of the two countries’ $879.9 billion in goods trade in 2025, according to the U.S. Bureau of Economic Analysis. Trump also posted an AI-generated hockey-themed cartoon involving Mark Carney and reiterated his “NO MORE SELLING BOMBARDIER” message. Bombardier said it spends more than $2.5 billion annually with about 2,800 U.S. suppliers across 47 states.