US and Canada edge toward bigger trade war

The United States is escalating its trade fight with Canada by banning several Canadian products and raising tariffs on others, adding pressure to already strained relations between the two neighbors.

President Donald Trump signed a series of executive orders on Tuesday accusing Canada of unfairly restricting American businesses. The move came after Canada imposed $20 billion in retaliatory tariffs on US goods yesterday, targeting products such as steel, in response to US duties on the country.

In addition to restrictions on sales of planes from Canadian aerospace company Bombardier, the Trump administration added more tariffs on Canada and moved to ban products such as whey, non-alcoholic beer, certain alcoholic beverages, and motorbikes.

The new import bans will take effect on September 29.

How did things get to this point?
After a Trump-announced preliminary deal between the countries fell apart in August, the US and Canada started blaming each other with accusations over bad-faith proposals and non-negotiable demands.

Canada said the US wanted changes to how French-language content appears on streaming platforms, which Washington denied. Meanwhile, Commerce Secretary Howard Lutnick said Canada derailed the deal with a last-minute demand for lower tariffs on trucks.

Canadian Prime Minister Mark Carney said Canada would face a cost for challenging Washington but would pay an even greater price by doing nothing.

The latest measures deepen a trade dispute that has already affected businesses on both sides of the border.

The levies come at a politically sensitive moment, with the US midterms approaching.

Ontario Premier Doug Ford even suggested curbing electricity exports to neighboring states like New York and Michigan.

Although both governments say they want a new trade agreement, negotiations have remained stalled.

Businesses now fear higher costs, weaker sales and further disruption across the deeply connected North American economy.