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Canadian premier suggests targeting US fighter jets and coal in trade dispute

Created at 26 Aug · 6:36 AM1 source↑ Market-relevant
IN SHORT

British Columbia Premier David Eby proposed that Canada consider non-tariff measures against the U.S. in their escalating trade war, suggesting a halt to the planned purchase of F-35 fighter jets and additional export tariffs on American thermal coal.

Key Numbers

$870 billiongoods and services traded between US and Canada in 2025
50%new US tariffs on Canadian imports
$20 billionof Canadian imports affected by new US tariffs
January 1date for increased tariffs on Canadian vehicles, auto parts, and steel
September 8start date for Canadian dollar-for-dollar retaliation
27.6 billion Canadian dollarsof US imports targeted by Canadian tariffs
$20 billionvalue of US imports targeted by Canadian tariffs
$12 billionplanned cost of F-35 fighter jets
88F-35 fighter jets Canada planned to acquire
March 2025date when procurement of F-35s was put under review
$8.2 billioncontract for Canadian Coast Guard icebreakers
sixCanadian Coast Guard icebreakers

Who's Involved

David Eby
British Columbia Premier suggesting trade dispute measures
Donald Trump
US President imposing tariffs on Canadian imports
François-Philippe Champagne
Canadian Finance Minister announcing retaliatory tariffs
Lockheed Martin
US defense giant from which Canada planned to buy F-35 jets
Canadian premier suggests targeting US fighter jets and coal in trade dispute

↳ Why This Matters

The proposals highlight potential new fronts in the escalating trade war between Canada and the U.S., indicating a willingness to use significant economic levers beyond traditional tariffs to exert pressure.

Key facts

  • British Columbia Premier David Eby suggested Canada should consider non-tariff measures against the U.S. in their trade dispute.
  • Eby proposed halting Canada's planned purchase of F-35 fighter jets from U.S. defense giant Lockheed Martin.
  • Eby also suggested imposing additional export tariffs or taxes on American thermal coal shipped through British Columbia.
  • The proposals come amid escalating trade tensions, including new U.S. tariffs on Canadian imports and planned Canadian retaliation.
  • Canada's Finance Minister announced tariffs on $20 billion of U.S. imports, including steel, fish, dairy, and electronics.

British Columbia Premier David Eby has proposed that Canada consider non-tariff measures in response to the ongoing trade dispute with the United States. Eby suggested that Canada should reconsider its planned purchase of 88 F-35 fighter jets from U.S. defense contractor Lockheed Martin, a deal valued at approximately $12 billion. He argued that buying jets from a country that imposes tariffs on Canadian goods is counterproductive.

In addition to the fighter jet procurement, Eby also suggested exploring additional export tariffs or taxes on American thermal coal that is shipped through British Columbia to the Westshore terminal near Vancouver. This route is a significant export channel for U.S. coal producers.

These proposals come as the trade relationship between the U.S. and Canada has significantly deteriorated. The U.S. recently imposed new 50% tariffs on approximately $20 billion of Canadian imports, with further increases planned for Canadian vehicles, auto parts, and steel. Canada has announced its intention to retaliate with dollar-for-dollar tariffs on U.S. imports, including steel, fish, dairy, and electronics, totaling about $20 billion.

Frequently asked questions

The Canadian premier suggested halting the purchase of F-35 fighter jets and imposing additional export tariffs on American thermal coal.

He is suggesting these measures as a response to the escalating trade war and U.S. tariffs on Canadian imports.

Canada had planned to acquire 88 F-35 fighter jets for approximately $12 billion.

The U.S. has imposed new 50% tariffs on about $20 billion of Canadian imports, with further increases planned for vehicles, auto parts, and steel.

What Happens Next

01Canada's retaliatory tariffs are set to begin on September 8.
02Further discussions are expected regarding the F-35 procurement and potential coal export tariffs.

How It Developed

British Columbia Premier David Eby suggested Canada should consider non-tariff measures against the U.S. in their trade dispute.
Eby proposed halting Canada's planned purchase of F-35 fighter jets from U.S. defense giant Lockheed Martin.
Eby also suggested imposing additional export tariffs or taxes on American thermal coal shipped through British Columbia.
The proposals come amid escalating trade tensions, including new U.S. tariffs on Canadian imports and planned Canadian retaliation.
Canada's Finance Minister announced tariffs on $20 billion of U.S. imports, including steel, fish, dairy, and electronics.

Sources

T1
A Canadian premier has 2 ideas about where to hit Trump where it hurts: US fighter jets and coalBusiness Insider

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