Canada has slapped new taxes on US goods in response to Trump's latest tariffs, and it's bad news for American manufacturers, farmers, and workers in red states.

• Canada put tariffs of 15% to 50% on about $28 billion Canadian worth of US goods, including dairy, farm equipment, appliances, steel and clothing.
• The targets look chosen to hurt Trump's voters before the midterms, and earlier tariffs on cars stay in place.
• Trump doubled down by threatening Canadian planemaker Bombardier, only to find the company employs over a thousand people in Kansas — and both Republican senators there pushed back.
• The likely motive is Trump's long-stated wish to replace the income tax with tariff money, an idea that worked in the 1890s but cannot fund a modern government.
• Canada is building new trade ties elsewhere, and those deals won't be undone even if Trump backs off.

Outlook: Canada looks unlikely to fold, so expect more rounds of tit-for-tat tariffs, with US aluminum and steel supplies the next pressure point.