Canada’s counter-tariffs are set to take effect at midnight, marking a sharp escalation in the trade war between the two nations. The move comes in direct response to U.S. President Donald Trump’s announcement of 50% tariffs on Canadian goods, which has sparked fears of economic disruption across industries. The tariffs, which target hundreds of Canadian products, are roughly equivalent in value to the goods subject to Trump’s own tariffs, creating a tit-for-tat scenario that threatens to deepen economic tensions.

Unifor, Canada’s largest labour union, has warned of significant economic impacts, with national president Lana Payne describing the situation as unlike any Labour Day in recent memory. The union highlights the uncertainty facing workers and businesses as the new tariffs take effect. Meanwhile, Trump has continued to target specific Canadian industries, including Bombardier, the country’s leading aircraft manufacturer. He has threatened to block U.S. Sales of Bombardier products, citing unfair trade practices and a refusal to certify certain U.S.-made planes.

The trade war has intensified in recent months, with both sides imposing retaliatory measures. Canada’s counter-tariffs are part of a broader strategy to counter U.S. Economic pressure, but the long-term effects remain unclear. As the deadline approaches, businesses and workers brace for the consequences of a trade conflict that has become increasingly disruptive.