Canada’s retaliatory tariffs take effect as Trump threatens to ban Bombardier jet sales in US

The trade war between the United States and Canada has entered a new chapter — and it could quickly get even uglier. At 12:01 a.m. ET on Tuesday, Canada imposed 15% to 50% duties on roughly $20 billion worth of American goods, matching the tariffs President Donald Trump imposed on Canadian goods last month.

Paper products, construction materials, home appliances and agricultural products are also facing fresh duties. Trade talks between the two nations, which are top trading partners, broke down last month at the 11th hour. Trump had initially pushed back his self-imposed deadline for the tariffs, touting a deal that was within reach. But the two sides failed to bridge their remaining differences as negotiators haggled over the final details.Since then, US President Donald Trump and Canadian Prime Minister Mark Carney have traded increasingly pointed jabs. Trump went as far as renaming Lake Ontario as “Lake America,” threatened to double auto tariffs to 50% on January 1, and now plans to ban one of Canada’s top aircraft companies, Bombardier, from selling in the US unless it builds its planes there. “If they want our Market, they must build here, and stop treating America like a ‘piggybank,’” Trump wrote in a Truth Social post Monday. CNN has reached out to the White House regarding the suggested ban. In a response to CNN, the Montreal-based company said it maintains a significant manufacturing presence in the US, and has continued to expand in the country. “The American aerospace industry is a clear winner on trade and exports. Bombardier is a strong contributor to the sector, creating tens of thousands of jobs across the United States,” it said. Throughout the trade talks, Carney has accused the Americans of not negotiating seriously.“When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions — we can have those discussions,” Carney said last week. The intensifying trade war between the two neighbors is unfolding just two months before the US midterm elections, putting Republicans in competitive races in the position of explaining their views on tariffs imposed by the president. That includes Sen. Susan Collins of Maine, who faces a tough reelection fight and has criticized Trump’s tariffs.