Canada: 27.6 billion CAD in counter-tariffs take effect, Trump targets Bombardier

Ottawa is imposing “dollar-for-dollar” surtaxes in response to U.S. duties imposed on 22 August. The affected products include steel, dairy products, household appliances, agricultural equipment, pulp and paper, as well as electronics. The Canadian amount corresponds to approximately 20 billion U.S. dollars.

The Canadian government is accompanying these measures with a support package of 7.5 billion Canadian dollars for workers and businesses affected by the trade confrontation. This includes liquidity aid, diversification funds, and measures aimed at employees and employers exposed to the new tariffs.

The day before, Donald Trump intensified pressure on Bombardier. In a message posted on Truth Social, he stated that the Canadian manufacturer should no longer sell in the United States if it does not start producing its aircraft there. However, no regulatory decision detailing the implementation of such a ban had been announced immediately.

This latest statement continues a series of threats against the Canadian industry. At the end of August, the U.S. president had already announced his intention to raise certain duties targeting Canadian vehicles, auto parts, and steel to 50% starting from 2027..

Canada announced its countermeasures after the failure of trade negotiations with Washington and the entry into force of the new U.S. duties. Ottawa says it wants to protect its producers by applying to American goods rates equivalent to those imposed by the United States on targeted Canadian products.

Bombardier already has a significant industrial and commercial presence in the United States, where the company employs several thousand people and works with numerous suppliers. The group had not immediately responded to the new presidential threat reported Monday by Reuters.