The Globe and Mail
· collected 2026-09-09 · by Mark Rendell, Adrian Morrow, Nathan VanderKlippe
Story summary
The United States and Canada have been engaged in a trade war for several months. On Tuesday, Canadian retaliatory tariffs came into effect**, targeting U.S. goods worth $27.6 billion, with duties ranging from 15 to 50%. The move was in response to the Trump administration's imposition of tariffs on Canadian goods worth nearly $28 billion under Section 338 of the Tariff Act of 1930.
In response, the U.S. President Donald Trump banned the import of various Canadian products, including alcohol, motorcycles, and dairy products, starting from September 29. The ban also includes 50% tariffs on a series of other products, such as paper and wood products, aluminum products, furniture, and mattresses.
The trade war has led to a decline in tourism between the two countries, with Canadians choosing to avoid traveling to the U.S. due to the tensions. As one marketing executive based in Vancouver said, "It's such a big ask right now... It's just a wasted effort."
Canada's Prime Minister Mark Carney has defended the country's decision to retaliate against the Trump administration's tariffs, saying that Ottawa will not back down and warning of tough times ahead for Canadians. A recent poll found that 80% of respondents support or somewhat support dollar-for-dollar countertariffs.
The trade war between the U.S. and Canada is an escalation of tensions that began last month when trade talks collapsed. The dispute has led to economic pain on both sides, with Canadian businesses affected by the tariffs and American tourism organizations trying to woo Canadians back to visit the United States.
Written for “US Canada Trade War Escalation” on 2026-09-09,
grounded in this article and the 55 other(s) covering the same event.
U.S. President Donald Trump has issued a sweeping ban on imports of Canadian alcohol, motorcycles and some dairy products as Washington ratchets up pressure in response to Ottawa’s latest countertariffs.
asserted
Washington → issue → countertariffs
On Tuesday, Mr. Trump signed an order stopping the import of a broad range of alcoholic beverages, including beer sold in cans and bottles, rye whisky and many types of wine.
asserted
Trump → sign → wine
He issued separate orders banning the import of whey protein, molasses and motorcycles.
asserted
He → issue → protein
The measures, which are scheduled to take effect on Sept. 29, followed Canada’s decision on Tuesday to proceed with tariffs on $28-billion worth of U.S. products.
asserted
which → schedule → products
Ottawa’s levies were “dollar-for-dollar” retaliation for a new round of U.S. tariffs that hit Canadian products last month.
asserted
that → hit → products
The tit-for-tat tariffs, combined with more threats from Mr. Trump, amount to a major escalation in the trade war that has been ramping up since Ottawa walked away from the negotiating table last month.
asserted
Ottawa → combine → table
In a video posted online on Tuesday, Prime Minister Mark Carney sought to rally Canadians behind the government’s decision to hit back against the U.S. while warning of tough times ahead.
asserted
Carney → post → times
Prime Minister Mark Carney is warning Canadians that the country's pivot away from the United States will come at a cost, but that the alternative would be far worse.
asserted
alternative → warn → cost
“I don’t believe in escalating the conflict.
asserted
I → believe → conflict
That’s not constructive,” Mr. Carney said in the 15-minute video, which was full of historical references to past economic tensions with the United States and previous generations’ efforts to protect Canadian sovereignty.
asserted
which → ’ → sovereignty
“But our tariffs are necessary to protect our workers, protect our companies and our communities.
asserted
tariffs → protect → companies
We can’t let American goods into Canada tariff-free while they charge our companies to export.”
asserted
they → let → companies
Alongside the outright bans on Canadian products, Mr. Trump also adjusted several existing tariffs on Tuesday, increasing levies on a number of cheese products, motorboats and paper products while removing them from cement, sugar and toilet paper, among other items.
asserted
Trump → adjust → items
And he threatened in a social-media post to restrict Canadian companies’ ability to compete for certain U.S. government contracts.
asserted
he → threaten → contracts
Mr. Trump said he would order the U.S. General Services Administration to remove Canadian products from its Multiple Award Schedule program, which government agencies use to purchase things such as information technology and office supplies.
asserted
agencies → say → technology
Canada struck back at U.S. President Donald Trump on Tuesday with tariffs on about $28-billion worth of U.S. goods, in response to the latest round of tariffs on Canada.
asserted
Canada → strike → Canada
So far, Mr. Trump’s pressure has backfired, strengthening support for Mr. Carney rather than forcing concessions.
asserted
pressure → backfire → concessions
The GSA oversaw the procurement of around US$50-billion worth of goods and services from American and international vendors as part of that program in 2025.
asserted
GSA → oversee → 2025
However, not all U.S. government procurement happens this way, said Ted Murphy, co-leader of the global arbitration, trade and advocacy practice at U.S. law firm Sidley Austin LLP.
asserted
leader → happen → LLP
“It’s not like somebody buying 100,000 laptops; that might be a more direct procurement, you’re going to put out a more direct [request for proposal],” Mr. Murphy said in an interview.
uncertain
Murphy → ’ → interview
“Here it’s like somebody needs 12 laptops today, and they might need 25 laptops tomorrow, and they want to have people in the pipeline so they can basically go shopping.
uncertain
they → ’ → shopping
It’s like Amazon for government procurement.”
asserted
It → ’ → procurement
Dominic LeBlanc, the minister responsible for Canada-U.S. trade, said in a social media post on Tuesday evening that he was in contact with his American counterpart, U.S. Trade Representative Jamieson Greer.
asserted
he → say → counterpart
“When the US is ready to engage, our government will work in good faith and constructively towards a more secure mutually beneficial trading relationship that fully respects Canadian sovereignty,” he wrote.
asserted
he → engage → sovereignty
The Trump administration has long complained about Canada’s restrictions on dairy imports, which are part of the country’s supply-management system.
asserted
which → complain → system
And over the past year, provincial restrictions on U.S. alcohol sales and measures to exclude U.S. companies from provincial government contracts have become major irritants for Washington.
asserted
restrictions → exclude → Washington
Persuading Ottawa to change how it allocates dairy import licences and getting the provinces to back down on their alcohol bans and procurement restrictions were major U.S. goals in the trade talks that fell apart last month.
asserted
that → persuade → talks
In return, Ottawa had been seeking lower tariffs on key Canadian industries, including steel, aluminum, automobiles and lumber, and to avoid additional tariffs.
asserted
Ottawa → seek → tariffs
In his Tuesday video, Mr. Carney reiterated his argument about why Canada walked away from the negotiating table at the last minute.
asserted
Canada → reiterate → minute
He said the U.S. wanted to introduce language that would have restricted Canada’s ability to make trade deals with other countries and to promote French content online.
asserted
that → say → content
He also said the U.S. refused to extend tariff relief to Canadian mid- and heavy-duty trucks.
asserted
U.S. → say → trucks
“The most fundamental issue is that the cumulative U.S. demands revealed that they wanted us to become even more reliant on them, not less,” Mr. Carney said.
asserted
Carney → reveal → them
“In too many areas, they wanted dependency, not a true economic partnership.”
asserted
they → want → dependency
Ottawa’s countertariffs, which came into force at 12:01 a.m. Tuesday, apply to 629 U.S. products – everything from clothing and home appliances to metals and electronics.
asserted
which → come → metals
Most of the tariffs are set at 25 per cent or 50 per cent, although a small number are set at a lower rate of 15 per cent.
asserted
number → set → cent
The levies are designed to shore up the domestic Canadian market for companies that are losing market share in the U.S., while also putting pressure on politically important states ahead of the U.S. midterms in November.
asserted
that → design → November
However, they also add another layer of complexity and cost for Canadian businesses, particularly manufacturers that may have trouble sourcing key inputs domestically.
uncertain
that → add → inputs
Mr. Carney acknowledged Ottawa’s decision to retaliate against the U.S. and to double down on efforts to diversify the country’s economic partnerships will be challenging.
asserted
decision → acknowledge → partnerships
“That pivot will come with a cost.
asserted
pivot → come → cost
There’s always a cost to action, but it doesn’t come close to the cost of standing still,” he said in the video.
asserted
he → ’ → video
…and 20 more, not listed.
