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Canada’s Counter‑Tariffs Take Effect as U.S. Announces Further Restrictions

Reciprocal duties plus announced U.S. procurement bans raise the risk of legal fights and cross‑border supply‑chain disruption.

Overview

  • Canada put its retaliatory tariffs into force on Tuesday, applying 15–50% duties on hundreds of U.S. products worth roughly $20–27.6 billion, including steel, aluminium and some dairy items.
  • The U.S. administration responded by issuing decrees that will add import bans and procurement restrictions for selected Canadian goods starting 29 September, broadening reciprocal measures.
  • President Trump amplified pressure on Canada through Truth Social, publicly threatening to block Bombardier sales in the United States if the company does not shift more production to U.S. soil.
  • Industry and government officials say a Bombardier sales ban would be hard to enforce because Bombardier employs about 3,500 people in the U.S., buys roughly $2.5 billion a year from American suppliers, and holds FAA certifications.
  • Businesses warn the tit‑for‑tat measures threaten tightly integrated sectors such as autos, aerospace, energy and agriculture and are likely to prompt court challenges over trade and procurement rules while raising risks to jobs and regional supply chains.