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Trump’s trade war with Canada escalates as new tariffs launch

President Donald Trump has targeted Canadian aircraft manufacturer Bombardier in his trade war with Canada. In this photo, an Air Canada Express Bombardier CRJ900 aircraft departs Ronald Reagan Washington National Airport. (Photo by Getty Images/Yassine Bahammou)

President Donald Trump has targeted Canadian aircraft manufacturer Bombardier in his trade war with Canada. In this photo, an Air Canada Express Bombardier CRJ900 aircraft departs Ronald Reagan Washington National Airport. (Photo by Getty Images/Yassine Bahammou)

WASHINGTON — Canada’s retaliatory tariffs on American goods kicked in Tuesday, escalating a trade war with one of the largest U.S. trading partners that President Donald Trump continued to antagonize over the holiday weekend.

Trump posted an AI-generated cartoon image of himself Sunday evening in which he is depicted as a hockey player striking Canadian Prime Minister Mark Carney, who is shown down on the ice, with a hockey stick. 

“Get up, governor,” a speech bubble from Trump’s mouth reads, apparently referring to Canada as a U.S. state rather than a sovereign country. 

Nearly $28 billion in U.S. exports crossing the border to Canada now carry up to 50% tariffs, a dollar-for-dollar match on Trump’s taxes on Canadian goods imposed last month, according to Canadian officials. 

Among the 629 categories of products Canada has targeted are key outputs from U.S. states with hotly contested races in the fast-approaching November midterm elections, including Maine’s paper and lumber industry, Michigan’s vehicle manufacturing and Wisconsin dairy production.

U.S. Sen. Susan Collins, a Maine Republican who’s in the midst of a tough reelection campaign, warned in late August roughly $170 million of her state’s goods will be impacted by the Canadian tariffs, with more than half of that coming from the forest product sector. Canada revised its tariff proposal Aug. 27 to exclude seafood, including Maine’s significant lobster industry. 

5% of goods in question

The United States and Canada’s dueling tariffs represent roughly 5% of the two countries’ massive and intertwined trading partnership, which totaled $879.9 billion in goods in 2025, according to the U.S. Bureau of Economic Analysis.

But the escalation has been accompanied by Trump’s near constant trolling of the U.S. northern neighbor, including threats since his days on the 2024 campaign trail to annex Canada as the 51st state. 

Over the Labor Day weekend, the president declared on his Truth Social platform “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!”

“If they want our Market, they must build here, and stop treating America like a ‘piggybank.’ BUY AMERICAN. FLY ON AMERICAN AIRLINERS. ENJOY AMERICAN LIQUOR AND BEVERAGES. SAIL ON LAKE AMERICA. AMERICA FIRST!” Trump wrote, referencing his executive order Aug. 27 renaming Lake Ontario to Lake America.

The Canadian aircraft maker Bombardier has multiple manufacturing partners and facilities in the United States, including in Arizona, Florida, Indiana, Kansas and New Jersey, according to the company.

“Bombardier aircraft create tens of thousands of U.S. jobs through the company’s growing American footprint as well as within its supply chain made up of approximately 2,800 American companies across 47 states,” according to a Bombadier statement issued Monday. 

“The company spends over $2.5 Billion with suppliers each year. This deeply integrated network and incredible growth stem from the company’s heritage in the business jet industry, dating back to the innovations of Learjet in Wichita, Kansas, and the first business jets to enter service,” the statement continued.

U.S. Sen. Jerry Moran said in a post on X Monday evening that he contacted Trump “to make certain the President is aware of the significant contributions of Bombardier to Kansas and the importance of its presence in Wichita to many Kansas workers at Bombardier and in the Bombardier supply chain.”

The company supports roughly 1,000 jobs in the state, according to the Kansas Republican.

Executive orders

Trade talks between the U.S. and Canada collapsed Aug. 21. In days prior Trump had said he would delay new tariffs on Canadian goods while negotiations continued. 

Trump signed three executive orders for new tariffs on Canada in late July using a Depression-era law that has never been enforced. 

Section 338 of the Tariff Act of 1930 authorizes the president to impose duties up to 50% of a product’s value in response to discrimination against U.S. commerce. 

Trump imposes new host of tariffs on trading partners, alleging they use forced labor

President Donald Trump imposed new import taxes on products from dozens of top U.S. trading partners on Friday, July 24, 2026. In this photo, Trump spoke before a friendly crowd at Wheeler High School near Marietta, Georgia, on July 22, 2026. (Photo by Ross Williams/Georgia Recorder)

President Donald Trump imposed new import taxes on products from dozens of top U.S. trading partners on Friday, July 24, 2026. In this photo, Trump spoke before a friendly crowd at Wheeler High School near Marietta, Georgia, on July 22, 2026. (Photo by Ross Williams/Georgia Recorder)

WASHINGTON — President Donald Trump reignited his tariff agenda Friday by imposing new import taxes on products from dozens of top U.S. trading partners, immediately replacing temporary global tariffs he levied after the U.S. Supreme Court delivered a major blow to his sweeping “Liberation Day” duties.

As of Friday morning, American importers will now pay an extra 10% to 12.5% of a product’s value on most goods from nearly 60 countries, including Canada, the European Union, Japan, Mexico, South Korea, Taiwan and the United Kingdom, among dozens more. The tariffs could affect 99.4% of imports, according to U.S. trade authorities.

The fresh round of import taxes, first announced late Thursday afternoon, replace a blanket 10% tariff on global goods under Section 122 of the Trade Act of 1974, which expired at midnight Friday. Those tariffs invited new legal challenges, including from Democratic-led states.

The latest tariffs were imposed after the Office of the United States Trade Representative allegedly found forced labor conditions in all of the economies investigated under Section 301 of the Trade Act of 1974.

U.S. Trade Ambassador Jamieson Greer said in a statement Thursday that Trump “recognizes that decades of moral suasion have not eradicated forced labor from global supply chains.  The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.”

Supreme Court ruling

The Office of the United States Trade Representative announced two broad investigations in March, less than one month after the Supreme Court struck down Trump’s unprecedented global tariffs under the 1977 International Emergency Economic Powers Act, commonly called IEEPA. 

Shortly after the Supreme Court’s blow to his IEEPA tariffs, which he announced in early April 2025 on what he dubbed “Liberation Day,” the government was on the hook for roughly $166 billion in refunds to American importers who already paid the duties.

The latest batch of duties, in effect as of Friday, is the second round of import taxes the Trump administration announced this week. The White House introduced 50% tariffs on most Canadian imports Monday, triggering the duties under Section 338 of the Tariff Act of 1930.

The Depression-era provision, which has never before been enforced, authorizes the president to impose duties up to 50% of a product’s value in response to discrimination against U.S. commerce.

States Newsroom has spoken with numerous small business owners since 2025 about the effects tariffs have on their capacity to keep prices steady, hire employees, invest in new equipment and inventory, and just generally remain in operation.

‘Ridiculously blunt’

Critics slammed the administration’s new series of sweeping duties on a large swath of the country’s imports.

Scott Lincicome, vice president for general economics at the libertarian Cato Institute, wrote Thursday the outcome of the Section 301 investigations were “clearly predetermined” and “both ridiculously blunt and wildly out of proportion to any measurable economic distortion.”

“And the whole thing establishes precedent for an ‘automatic tariff generator’ that Trump or a future president can deploy at will. It makes a mockery of a real issue and might poison legitimate reform. And Congress probably won’t do anything about it,” Lincicome wrote.

Some Republicans in the U.S. House rebuffed Trump’s tariff agenda in February, but legislative change has not emerged. 

Senate Minority Leader Chuck Schumer said in a statement Thursday the president has “has bled the inflation-battered American people dry with his tariffs.”

“Now he’s coming back for more. Trump’s chaotic tariff taxes have made life harder and more expensive for the American people. Families are paying more for everyday necessities. Small business owners are struggling to keep the lights on. Manufacturers are shedding jobs and farmers are getting squeezed. Meanwhile, Trump and his billionaire family and friends get richer on the backs of working families,” Schumer, D-N.Y., said.

The Yale Budget Lab estimates consumer prices could rise up to 1% under the new tariffs, increasing household costs by roughly $1,100.

If the duties remained in place, the U.S. would gain about $2 trillion in revenue over the next decade, though the number would likely be lower after accounting for negative impacts on the economy, according to the Yale Budget Lab.

Canadian hockey sticks, wine and cement subject to new Trump tariffs

President Donald Trump attends a bilateral meeting with Egyptian President Abdel Fattah el-Sisi on the sidelines of the G7 Summit on June 17, 2026 in Evian-les-Bains, France. (Photo by Anna Moneymaker/Getty Images)

President Donald Trump attends a bilateral meeting with Egyptian President Abdel Fattah el-Sisi on the sidelines of the G7 Summit on June 17, 2026 in Evian-les-Bains, France. (Photo by Anna Moneymaker/Getty Images)

WASHINGTON — President Donald Trump ordered 50% tariffs on several Canadian products Monday in response to what his administration describes as retaliatory restrictions on imports of American goods, including alcohol, dairy and automotives.

Trump’s three separate proclamations to impose steep tariffs on items like hockey sticks, wine and cement, came just days after he threatened to slap more tariffs on Canada as smoke from raging wildfires in Ontario blanketed much of the northeastern U.S. through the weekend. But a senior administration official denied the new tariffs were in response to the smoke.

“These are not the so-called wildfire tariffs. The president has asked for options on that, and options are being shared with him. These tariffs are in response to discriminatory treatment by Canada against U.S. products,” the senior administration official said on a call with reporters Monday afternoon.

The tariffs will go into effect Aug. 19.

Trump appeared alongside Canadian Prime Minister Mark Carney Sunday at the FIFA World Cup trophy ceremony in East Rutherford, New Jersey, but the two leaders did not discuss White House plans for the new tariffs, according to the senior administration official.

Trump triggered the new tariffs under Section 338 of the Tariff Act of 1930, a Depression-era provision that authorizes the president to impose duties up to 50% of a product’s value in response to discrimination against U.S. commerce. The provision has been long forgotten since the 1940s and has never been enforced, experts say

“To our knowledge, Section 338 has not been used for this purpose before,” the senior administration official told reporters. “It’s been on the books for a long time. In our view, the terms are clear: It gives the president this authority in situations where a country discriminates against the United States relative to the treatment given (to) a third country.”

Trump’s unprecedented sweeping tariffs on global goods, including from Canada, imposed in April 2025 under the 1977 International Economic Emergency Powers Act, or IEEPA, were found illegal and overturned by the U.S. Supreme Court in February.

The administration was ordered by the U.S. Court of International Trade to refund roughly $166 billion in duties paid by importers under the IEEPA tariffs.

Since the Supreme Court’s major blow to Trump’s trade agenda, the White House has sought other routes to impose tariffs. Almost immediately after the court’s decision, Trump announced a temporary base 10% tariff on all imports under section 122 of the Trade Act of 1974. Those tariffs are now being litigated in trade court.

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