The Canadian government began collecting tariffs Tuesday on billions of dollars worth of U.S. goods as part of an escalating trade war between the two nations.
The new tariffs, with rates of up to 50%, are intended to match U.S. tariffs imposed by President Donald Trump on Canadian imports “dollar for dollar.” The countertariffs apply to products including steel, paper and appliances. Among the products facing the full 50% tariff are toilet paper, wood flooring and some dairy products.
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Canada said it imposed the countertariffs to protect Canadian workers.
Meanwhile, Prime Minister Mark Carney has promoted a “Build Canadian” campaign encouraging companies to increase domestic production. Last week, the Canadian government announced a multibillion-dollar deal to build rail cars in Canada that previously were manufactured in the United States.
Trump has responded in several ways. First, he ordered the U.S. government to rename Lake Ontario as Lake America. He also said Canadian aircraft manufacturer Bombardier must begin producing planes in the United States.
“Their products aren’t good enough! Over 50% of their revenue comes from the United States — They live off American buyers, American companies, American airports, and American service — all while Canada blocks our GREAT American banks and companies throughout the U.S.A.,” Trump wrote on Truth Social. “They even blocked Gulfstream Aerospace from doing business in Canada — completely unjust and unfair! That Era is OVER! If they want our market, they must build here and stop treating America like a ‘piggybank.’”
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The escalating trade war has also affected Canadian tourism to the United States. Statistics Canada data showed a 21.5% decline in return trips from the United States to Canada in 2025 compared with 2024. Early 2026 figures showed the decline in Canadian travel to the United States continued.
