President Trump escalated his trade war with Canada on Tuesday, announcing in a social media post that he will try to limit the federal government’s purchases of Canadian products.
The announcement came after Canada imposed retaliatory tariffs ranging from 15% to 50% on about $20 billion worth of U.S.-made goods Tuesday, its latest step in the tit-for-tat escalation of the economic conflict between the North American trading partners.
The tariffs affect a wide array of products, ranging from steel, aluminum, forklifts and golf clubs to milk, perfume, cheese and fishing rods.
Canadian Prime Minister Mark Carney said last month that the tariffs were being imposed in response to actions taken by the United States following the last-minute collapse of trade talks between the two nations. In the wake of that collapse on August 21, the United States immediately imposed its own tariffs on roughly $20 billion worth of Canadian products.
In a video posted to social media on Tuesday, Carney said he would prefer to avoid the conflict but needs to take steps to maintain balance in the relationship between the two neighbors.
“I don’t believe in escalating the conflict, that’s not constructive, but our tariffs are necessary to protect our workers, protect our companies and our communities,” he said. “We can’t let American goods into Canada tariff-free while they charge our companies to export.”
Canada is the United States’s second-largest trading partner, trailing only Mexico.
A new threat: As part of his ongoing trade offensive, Trump has kept up a barrage of threats and insults, including renaming Lake Ontario as “Lake America.” That effort continued this week, as he laid out a new threat to a major Canadian jet manufacturer just hours before the retaliatory tariffs were scheduled to take effect.
“NO MORE SELLING BOMBARDIER IN THE UNITED STATES!” Trump said on his social media platform Monday. “Over 50% of their revenue comes from the United States ... If they want our Market, they must build here, and stop treating America like a ‘piggybank.’”
In response, Bombardier — the company that invented the snowmobile and is now a major manufacturer of business jets — noted that many of the key components in its products, including engines and avionics, are manufactured in the United States. The company’s business is deeply entwined with the United States, and its supply chain involves about 2,800 U.S. companies located in 47 states, including major facilities in California, Texas and Indiana.
“The American aerospace industry is a clear winner on trade and exports,” the company said in a press release. “Bombardier is a strong contributor to the sector, creating tens of thousands of jobs across the United States.”
And another new threat: Trump announced Tuesday afternoon that, in response to what he said was a lack of reciprocity in trade terms, he is ordering the General Services Administration to “take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies.”
Trump said the move, which would eliminate Canadian-made products from U.S. government contracts, affects $50 billion worth of goods, though it’s not clear how much of that total is Canadian.
Saving money? While many economists emphasize the mutual benefits of international trade, Trump has long seen trade as a zero-sum game, and trade deficits as proof that foreigners are “ripping off” the United States. Speaking to reporters in the Oval Office last week, Trump indicated that the United States could “save” billions of dollars by refusing to trade with countries that consistently maintain trade deficits.
“All we have to do to cut our trade deficit with a country is not trade with them,” Trump said. “Canada is one. If we don't do any trading with Canada, we just end all trade with Canada. We'd save ourselves $90 billion.”
Most economists would strenuously disagree with this assessment, arguing instead that less trade simply means less economic activity or higher prices — or both.
Still, that hasn’t prevented Trump from framing trade in strictly nationalist terms. “I don't want Canadian cars, I don't want Canadian parts, I don't want Canadian anything,” he said last month on social media. “They've been ripping us off for decades, and it's going to stop.”
GOP senators express concerns: Sens. Jerry Moran and Roger Marshall, both Republicans from Kansas, defended Bombardier, a major employer in their state, and said they oppose Trump’s threatened ban on jet sales.
“I’m going to fight to keep Bombardier’s over 1,200 Kansas jobs,” Marshall said Tuesday on social media. “I’ve already taken that concern inside the Oval Office.”
On Sunday, Moran said he had contacted the White House about the issue. “This afternoon, I reached out to the Trump administration to make certain the President is aware of the significant contributions of Bombardier to Kansas and the importance of its presence in Wichita to many Kansas workers at Bombardier and in the Bombardier supply chain,” he said on X. “I will continue working to see that Bombardier’s manufacturing operations not only remain in Kansas but continue to grow and create American jobs.”