Canada's $19.8 Billion Retaliatory Tariffs Take Effect; Trump Threatens Total Ban on Bombardier Aircraft Sales

Canada this Tuesday formally imposed retaliatory tariffs of up to 50% on approximately $19.8 billion worth of U.S. goods, creating a compounded shock alongside U.S. President Trump's threat to ban all Bombardier aircraft sales, pushing the U.S.-Canada trade war to a new level of intensity. According to France 24's business program, the retaliatory tariff measures took effect this Tuesday.

According to France 24's report, Canada's retaliation this time covers a total of approximately $19.8 billion in U.S. exports, with a maximum tariff rate of 50%, representing a direct response to the U.S.'s previous tariff escalation and signaling that the two countries have fallen into a tit-for-tat cycle in their trade dispute.

Trump's threat against Bombardier is even more destructive. France 24 noted that despite this Canadian aircraft manufacturer having a "vast supplier network" in the United States, Trump still threatened to ban all of its aircraft sales in the country. This means that once the ban takes effect, those affected will not only be Bombardier's headquarters in Canada, but also the businesses and workers in the United States that provide parts, maintenance and logistics for Bombardier. The report did not disclose the specific legal basis or implementation timeline of this threat, nor did it specify the product categories covered by Canada's tariff retaliation.

The double compounding of the tariff war and the industrial ban is striking at the deeply integrated manufacturing chain in the North American region. The pace of cross-border parts transportation and assembly has been disrupted, making it difficult for companies to formulate medium- and long-term capacity and inventory plans. The resulting costs and uncertainties will be transmitted along the supply chain to employment and consumer markets at both ends of North America.

The asymmetry of this tariff confrontation is also evident. Canada's $19.8 billion retaliation targets a U.S. export market that far exceeds its own in scale, while the Canadian side remains limited in the coverage scope and tariff rate design of its tariff tools, reflecting the scale and leverage disadvantage of Canada within the North American economic structure.

The same France 24 program also mentioned Iran raising gasoline prices and French AI startup Mistral AI's valuation climbing to 21 billion euros.