Economy · Trade War EscalatesCanada's $27.6B Retaliation Hits Tuesday as Trade War EscalatesAired September 6, 2026 at 10:01 PM UTCWritten September 6, 2026 at 10:04 PM UTCRead the write-upThis storyTranscript · LOADING0:00Canada's dollar-for-dollar counter tariffs on $27.06 billion of U.S.0:05goods take effect Tuesday.0:06That is the latest round in a trade war already costing both sides billions.0:11U.S.0:11tariffs of 50% are hitting more than 550 product categories from chemicals to hockey0:16sticks, and Ottawa is answering with matching duties on American imports.0:21The formal talks meant to stop this collapsed in August, and no new negotiations are0:25scheduled.0:26So the question is whether the two leaders can find a deal before the mutual damage0:30becomes permanent.0:31The U.S.0:32tariff is 50% across more than 550 tariff subheadings, covering everything from0:36chemicals and plastics to building materials, liquors, and even hockey sticks.0:41It took effect in the early hours of August 22nd, under three proclamations signed0:45July 20th, citing Section 338 of the Tariff Act of 1930.0:49The only U.S.0:50tariff level currently quantified is that 50% line.0:53There is no separate verified figure for steel, aluminum, autos, dairy, or lumber.0:58A separate 10% tariff on goods linked to forced labor has been in effect since July1:0224th.1:03Behind that timeline, the talks broke down late on August 21st, with each side1:07giving a different account.1:08Prime Minister Kearney suspended the talks, called the U.S.1:10tariffs a miscalculation, and has pointed to a lumber tariff dispute as another1:14factor.1:15U.S.1:15Commerce Secretary Howard Luttnick blamed Canada's politics.1:18The President's Post accused Kearney of making him the enemy and warned that1:22Canada's economy would collapse, with political consequences worse than anything1:26Kearney has faced.1:27The wording does not use the word stalling.1:29That characterization comes from reporting of the Post, not the Post itself.1:33Ottawa will match the US dollar for dollar, applying rates of 15, 25, and 50% to1:38match the U.S.1:38rates on the targeted products.1:40The duties hit $27.6 billion Canadian dollars worth of American goods, effective1:45this Tuesday.1:46As of Friday, there were no plans to resume talks before then.1:49Canada's answer to the economic threat is concrete.1:52On the same day as the President's Post, Prime Minister Kearney announced the1:56largest investment in Via Rail's history, a 4.7 billion Canadian dollar contract2:00with Alstom Canada for 313 new passenger cars including 25 domes built entirely in2:05Canada under the federal buy-Canadian policy using Canadian steel and supporting2:10about 700 jobs.2:11It is the first time in four decades that Via Rail cars are built entirely in2:15Canada.2:16Transport Minister Stephen McKinnon acknowledged that Via Rail posted a 35% on-time2:20performance last year, blaming the CN-owned shared freight track the railway depends2:24on.2:25He said he has asked CN and VIA to negotiate service improvements.2:28The political costs are mounting on the American side.2:31Polling cited on the program shows Trump's approval at 34%,2:35about one in five Americans unaware the Canada tariffs even exist, and only about2:39one in five supporting the trade war.2:41Republican Senator Susan Collins of Maine has broken with the president over the2:45lack of consultation with border states, and California's governor has warned the2:50tariffs could survive beyond Trump's presidency.2:52So far, the door remains open only on Kearney's side.2:55He said Canada is ready for a mutually beneficial deal when the U.S.2:58is ready, but with no negotiations scheduled and counter tariffs due Tuesday, the3:03two capitals remain locked in a standoff.3:05And as the trade war exacts costs on both sides, the polling suggests Washington's3:09own political footing is already slipping.Explore with HeyDexFollow via RSSThe shortThe short ↗