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<\/p>\nCanada\u2019s retaliatory tariffs take effect as Trump threatens to ban Bombardier jet sales in US<\/p>\n
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President Donald Trump on Monday threatened to ban the sale of Canadian Bombardier jets if they are not built in the United States, hours before Canada moved forward with $20 billion worth of retaliatory tariffs on American goods, which took effect at 12:01 a.m. ET Tuesday.<\/p>\n
Canadian Prime Minister Mark Carney has stood firm on the country’s countermeasures and has signaled he will match any future trade actions Trump enacts.<\/p>\n
The latest spat marks a new, more vicious chapter in the rapidly escalating trade war between the two countries.<\/p>\n
The new levies include a doubling of taxes charged on American aluminum and steel to 50%, matching the rate the U.S. now charges on the metals from Canada. Paper products, construction materials, home appliances and agricultural products are also facing fresh duties.<\/p>\n
Trade talks between the two nations, which are top trading partners with one another, broke down last month at the eleventh 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.<\/p>\n
Since then, Trump and Carney have traded increasingly pointed jabs. Trump went as far as renaming Lake Ontario as “Lake America<\/a>,” threatened to double auto tariffs to 50% on January 1, and now has threatened to ban one of Canada’s top aircraft companies from selling in the U.S. unless it builds there.<\/p>\n “If they want our Market, they must build here, and stop treating America like a ‘piggybank,'” Trump said in a Truth Social post Monday. CNN has reached out to the White House regarding the suggested ban.<\/p>\n The Montreal-based company said it maintains a significant manufacturing presence in the U.S., 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.<\/p>\n Throughout the trade talks, Carney has accused the Americans of not negotiating seriously.<\/p>\n “When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions \u2014 we can have those discussions,” Carney said last week.<\/p>\n The intensifying trade war between the two neighbors is unfolding just two months before the U.S. 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.<\/p>\n Canadian Minister of Industry M\u00e9lanie Joly said the government is specifically tailoring its countermeasures to “put political pressure” on the Trump administration to reconsider its actions. Ottawa, however, exempted American seafood from the 25% duties \u2014 a move that spared industries in key states such as Alaska and Maine from a potentially significant hit.<\/p>\n Trump is all but certain to respond to these countermeasures, prompting yet another response from Carney. This next tit-for-tat could hit closer to home.<\/p>\n Ontario Premier Doug Ford has said that his province could put restrictions on electricity exports to the border states it supplies, such as New York and Michigan.<\/p>\n Why talks broke down<\/p>\n