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Tuesday, September 8, 2026

Gigantum.net
Business

The US/Canada trade war escalates as retaliatory tariffs from Canada spur the White House to unveil a plan to ban certain products entirely

Canadian retaliatory tariffs of up to 50% took effect on Tuesday on around 700 US products.

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Canadian retaliatory tariffs of up to 50% on some 700 US goods took effect on Tuesday and led to a quick response from the White House who unveiled plans hours later that included a plan to ban Canadian dairy products, most alcoholic beverages and motorcycles as relations between the US and Canada took yet another turn for the worse.

The move by Canadian Prime Minister Mark Carney solidified Canada as one of the few nations to choose confrontation in President Trump's trade wars. Canadians say they are willing to endure economic pain to make a point .

And neither side appeared interested in stepping back Tuesday with Carney striking a defiant tone and Trump's team quickly rolling out a series of actions in response, including the plans for a full ban on dairy products and a partial ban on alchohol products which currently have tariffs but will now be "excluded from importation into the United States" on September 29 if the stalemate between the two nations continues.

These bans will be carried out, the White House says, under Presidential Authority derived from Section 338 of the Tariff Act of 1930.

The new Canadian tariffs that went into effect on Tuesday were first announced in August to match an array of 50% tariffs that Trump imposed after trade talks broke down. The White House response to that response on Tuesday evening also included plans to adjust tariffs on other goods and a ban on Canadian goods in government contracts.

The Senior Trump administration official described Tuesday night's action as a response to Canadian actions but also said that US and Canadians officials had been in touch in recent days in what were described as constructive talks even as they remain far apart.

Meanwhile, the public position from the leaders of both sides has hardened in recent days.

Carney, in a web video released on Tuesday , struck a defiant tone acknowledging that a trade war would cause economic pain in his country but promising "we will do whatever it takes for as long as it takes" to avoid what he called a bad deal with the US.

Trump for his part has mostly been lobbing insults and recently posted a map that showed Canada and Mexico as part of the United States and leveled a threat to ban sales of Canadian aircraft manufacturer Bombardier in the United States.

The new measures from Canada went into effect at 12:01 a.m. ET, doubling the tariffs on American steel and aluminum products to 50%. Other tariffs range from 15% to 50% on clothing, wood products, appliances, cosmetics, farm equipment, and more.

Gathered from external sources. Rights to this text belong to whoever originally published it.