Canada's $20 billion in retaliatory tariffs on American goods took effect at 12:01 a.m. ET Tuesday, September 8, just hours after President Donald Trump threatened to ban sales of Canadian aerospace manufacturer Bombardier's jets in the US unless the company builds them domestically — marking a sharper, more personal turn in the rapidly escalating trade war between the two countries.
Trump's Bombardier Threat
In a Truth Social post Monday, Trump wrote: "If they want our Market, they must build here, and stop treating America like a 'piggybank.'" CNN said it had reached out to the White House for further details on the suggested ban. In response, Montreal-based Bombardier told CNN it maintains a significant manufacturing presence in the US and has continued to expand its American operations, adding: "The American aerospace industry is a clear winner on trade and exports. Bombardier is a strong contributor to the sector."
What's in Canada's New Tariff Package
Canada's countermeasures include a doubling of taxes on American aluminum and steel to 50%, matching the rate the US already charges on those metals from Canada. Fresh duties also apply to paper products, construction materials, home appliances, and agricultural products.
Why the Trade Talks Collapsed
Trade negotiations between the two countries — top trading partners with one another — broke down last month at the 11th hour. US Commerce Secretary Howard Lutnick said the deal fell apart because of last-minute requests from Canadian trade officials, including a request for tariff relief specifically for trucks. Following the collapse, Canadian Prime Minister Mark Carney has held firm on the country's countermeasures and signaled he will match any future trade actions Trump enacts going forward — a "dollar-for-dollar" posture Carney first articulated publicly weeks earlier.
An Increasingly Personal Feud
Since the talks collapsed, Trump and Carney have traded increasingly pointed jabs. Trump went as far as renaming Lake Ontario as "Lake America" in one social media post, and had already threatened to double auto tariffs to 50% on January 1 before Monday's Bombardier threat added a new, company-specific target to the escalating dispute.
What This Means for Bombardier
Bombardier, one of Canada's most prominent aerospace companies, produces business jets and other aircraft that are sold internationally, including significant sales in the US market. A ban of the kind Trump has floated would represent a direct, targeted escalation beyond the broad-based tariffs both countries have imposed on each other so far — shifting the conflict from general trade measures toward company-specific market access threats.
The Bigger Picture
Monday and Tuesday's developments mark the latest chapter in a cycle of escalation and partial de-escalation that has defined US-Canada trade relations for much of 2026. Canada has now imposed retaliatory tariffs on US goods multiple times over the past year and a half, even as both sides have periodically signaled interest in reaching a broader resolution — talks that have repeatedly stalled or collapsed at critical moments, as happened again last month.
What's Next
With Canada's new tariffs now in effect and Trump's Bombardier threat still unresolved, both governments face pressure — domestically and from affected industries on both sides of the border — to either find a path back to negotiations or continue escalating a trade relationship that remains economically significant for both countries. For continuing coverage, see the full CNN Business report.