Canada vows retaliation as Trump tariffs take effect and trade tensions escalate
New 50% U.S. tariffs on selected Canadian imports are now in effect as trade talks between the two countries falter. Canada has promised retaliatory measures, raising the stakes for North Dakota, which sends more than 80% of its goods exports to Canada.
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Trump issues new threats to Canada over trade
Trump threatened Monday to impose a 50% tariff on Canadian automobiles, car parts and steel starting next year as the trade rift with Ottawa deepens.
Trade talks between the otherwise allies and reliable trading partners collapsed last week. Long-planned U.S. tariffs on various Canadian goods went into effect after the talks broke off, and Canada has vowed to retaliate.
North Dakota – Canada Trade Connection
Canada is North Dakota's largest export market and a major source of goods imported into the state.
- $7 Billion in Exports: North Dakota exported $7 billion in goods to Canada in 2025—accounting for 80% of the state's total goods exports, according to the U.S. Trade Representative.
- $2.7 Billion in Imports: The state imports roughly $2.7 billion in goods from Canada annually, led by equipment and machinery, energy products, agricultural goods, and chemicals (Canadian government trade data).
- Tariff Outlook: New 50% U.S. tariffs are now in effect on roughly $20 billion in selected Canadian goods, representing about 5% of Canada’s annual exports to the U.S. Canada has announced “dollar for dollar” retaliatory measures beginning Sept. 8.
“Canada has been ripping off the United States of America for years,” Trump posted on social media Monday morning. Criticizing Canada’s “ridiculously high tariffs” on American farmers, Trump wrote: “Not sustainable, and NOT ANYMORE!”
Ontario’s premier says Canada should be ready to cut electricity, critical minerals to US
Doug Ford said Monday in an interview with The Associated Press that the late President Ronald Reagan would be “throwing up on” Trump over his trade policies. He also threatened to cut off electricity and critical minerals to the United States if the Canada-U. S. trade fight worsens.
“I’ll cut them off,” Ford said of critical minerals. “You won’t get a grain of sand out of Ontario.”
Ford said “everything is on the table” after Prime Minister Mark Carney walked away from trade talks late Friday.
Ford enraged Trump last year by using Reagan’s antitariff words in a television ad.
