Canada's 20% tariffs on US goods like milk, steel and golf clubs take effect

Canada's retaliatory tariffs kicked in just after midnight on roughly $20 billion worth of U.S. goods, setting up a high-profile trade standoff between President Donald Trump and Canadian Prime Minister Mark Carney. The escalatory actions come after trade talks collapsed at the 11th hour last month. Canada's tariffs put 15%, 25% or 50% duty across hundreds of American products — including steel, aluminum, dairy items like milk and cheese, golf clubs, appliances, clothing and farm equipment. The affected goods account for about 6% of the $333.6 billion in exports the U.S. sent to Canada last year.Hours before the 12:01 a.m. ET tariffs kicked in, Trump intensified his attacks on Truth Social, threatening a complete ban on aircraft sales from Canadian manufacturer Bombardier, vowing fairness to Americans and continuing his narratives against the world using the U.S. as a "piggybank." TRUMP FIRES BACK AT CANADA AFTER CARNEY SUSPENDS TRADE TALKS, ACCUSES US OF LAST-MINUTE 'POWER PLAY' Canadian Prime Minister Mark Carney and President Donald Trump have maintained an adversarial relationship, including some tense moments in the Oval Office at the White House on May 6, 2025, in Washington, D.C. (Anna Moneymaker/Getty Images / Getty Images)"NO MORE SELLING BOMBARDIER IN THE UNITED STATES! Their products aren’t good enough!" Trump wrote. "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."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." BUY AMERICAN. FLY ON AMERICAN AIRLINERS. ENJOY AMERICAN LIQUOR AND BEVERAGES. SAIL ON LAKE AMERICA. AMERICA FIRST!"Canada has already gone beyond tariffs in other ways. Eight of its 10 provinces continue to restrict or ban sales of U.S. alcohol. The Distilled Spirits Council says U.S. spirits exports to Canada fell more than 70% year over year after those restrictions took effect.Trump issued a warning late last week that Canada making Trump "the enemy" would prove dangerous."It is very good for Canadian Politicians like Prime Minister Carney to make President Donald J. Trump "the enemy," until their Economy collapses, then it will prove to be very bad for Politics — Worse than anything that has ever happened to a Canadian Politician," Trump wrote on Truth Social. "Just watch!"Vice President JD Vance warned Canada against punishing farmers in border states like Maine with tariffs on agricultural goods, while accepting U.S. military security and treating China better than the U.S. on trade."They treat Chinese goods more fairly than they do the goods that come from the people of Maine: It’s insanity," Vance said as a Brewer, Maine, just three days after trade talks broke down. "And what we’ve said to Canada is stop it."I think that we should have a deal, but I think that we need to send a message loud and clear to the prime minister of Canada: Stop taking advantage of the people of Maine. Stop taking advantage of America. It’s over."CANADA PLANS TARIFF RETALIATION AFTER TRUMP WARNS ITS LEADERS TO 'FALL IN LINE' Commerce Secretary Howard Lutnick detailed the standoff with Canada at the 11th hour of a stalled trade deal last month. (Fabrice COFFRINI / AFP via Getty Images / Getty Images)Carney has not been shy about pulling China closer as he leaned in on Canadian opposition to Trump and his America First agenda."I believe the progress that we have made in the partnership sets us up well for the new world order," Carney said earlier this year in Beijing.Chinese leader Xi Jinping is slated for a visit to the White House in two weeks.Trump's aggressive Canadian trade stance — which has included renaming Lake Ontario "Lake America" and threatening 50% tariffs on Canadian vehicles next year — has largely unified the Canadian public behind Carney's government, but Canada faces structural economic disadvantages as it sends more than 70% of its exports to its southern neighbor.Commerce Secretary Howard Lutnick detailed the last-minute snag Aug. 21 in an interview with Bloomberg Radio."It's Friday at 4 o'clock, we're signing it at like 6 or 7; there's no new topic that you're coming up with now," Lutnick said, pointing to a request for "heavy trucks." "And I said to him, 'Are you trying to blow this up?'"And the answer was, and I quote, 'I'm not allowed to say that.'"They decided for political reasons, domestically, domestic Canada, they'd rather fight with Donald Trump even if it's bad for the economy of Canada, for their political ambition to get certain election."Canada suggested the fallout came from objections to French-speaking Quebec."We don't care about their language," Lutnick added."This is the Canadian Liberal Party using their economy to get themselves elected even if they're selling their own citizens down the river. It's sad and disappointing, but that's just the way it is."TRUMP URGES CANADIAN COMPANIES TO IMMEDIATELY MOVE TO US, SAYS 'I DON'T WANT CANADIAN ANYTHING' Trade Representative Jamieson Greer has rejected Canadian narratives on the stalled trade deal, including using an anti-Trump agenda for political expediency. (Chip Somodevilla/Getty Images / Getty Images)Carney, set to address the European Parliament next week after framing the conflict at Davos as a defense against foreign economic coercion, has maintained that negotiations can resume once Washington becomes serious.Trump responded a day after Carney's Davos remarks by saying Canada "lives because of the United States" and warning: "Mark, remember that next time you make your statements."A government source told Reuters there are currently no talks between the two sides among ministers or government officials."What we are worried about is an escalatory spiral," according to Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney's advisory committee on bilateral U.S. economic relations. "But at the same time, we totally understand that the prime minister needs to find areas of leverage."The Canadian government needs to keep channels open to the United States and not go overboard in terms of rhetoric and reacting to the rhetoric from the American side, while waiting for the American decision-making process to come back to economics."U.S. Trade Representative Jameison Greer said Canada turned its back on the "best deal."Ticker Security Last Change Change % BDRPF BOMBARDIER INC. 13.6097 +0.31 +2.33% BF.B BROWN-FORMAN CORP. 26.73 -0.78 -2.84% STLD STEEL DYNAMICS INC. 242.06 -3.97 -1.61% GE GE AEROSPACE 337.12 +3.64 +1.09% GD GENERAL DYNAMICS CORP. 359.39 -6.48 -1.77% GET FOX BUSINESS ON THE GO BY CLICKING HERE"We offered them the best deal. They looked at it square in the face and turned around," he told Fox News' "Special Report" on Thursday."It wasn't good enough to have the best deal in the world. They wanted it to be even better."The Associated Press and Reuters contributed to this report.