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The best Xbox controller to buy right now

You may not realize it, but we’re living in a golden age of gaming controllers. The gamepads on the market now are higher quality, more versatile, and more customizable than anything from just a few console generations ago. If you’re gaming on an Xbox Series X or Series S (or a Windows PC), you now have a plethora of great third-party options from the likes of PowerA, Scuf, Nacon, and Turtle Beach, as well as high-quality first-party controllers. The days of the cheap “little sibling” controller that looked cool but barely worked are over.

I’ve spent a ton of time playing all kinds of games (first-person shooters, fighters, third-person action-adventure, racing, indie roguelikes, etc.) to test a wide swath of Xbox controllers, and it may be unsurprising that the standard Xbox Wireless Controller is the best Xbox controller for most. It makes a great PC controller, too.

But while the de facto Xbox gamepad strikes the right balance of quality, comfort, versatility, and price, there are several alternatives worth cross-shopping if you have specific needs — ranging from high-end options like the Xbox Elite Series 2 and Scuf Instinct Pro to quality budget picks like the PowerA Enhanced Wired Controller.

The best Xbox controller for most people

The official Xbox Wireless Controller has a dedicated share button for saving clips and screenshots and sharing them online, Bluetooth support, and a USB-C port for charging up Microsoft’s play-and-charge rechargeable battery.

Connectivity: Xbox wireless, Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: No / Software customization: No / Power: AA batteries or add-on rechargeable

Okay, I already know what you’re thinking. “The best controller for Xbox is the one that comes with the Xbox?” That may seem like a no-brainer, but this “standard” controller truly does earn this title as the best option for most Xbox gamers. It may lack some of the extra features that we’ll go over on premium options, but this controller is the distillation of four generations and numerous first-party models before it — and it shows.

This is the only affordable wireless Xbox controller out there, thanks to Microsoft’s proprietary protocol. While some may hate that it comes with AA batteries instead of a built-in rechargeable cell, that also means it’s flexible, allowing for rechargeable AAs or a battery pack. It also works as a wired accessory with a USB-C cable, and user-replaceable batteries mean you’re not stuck with a controller that doesn’t hold its charge after years of use.

The standard Xbox controller looks great, feels great, plays great, and is available in cool colors.

AA batteries may not be ideal, but you can also use add-on rechargeable packs, like this one from Hori.

Attention to detail: Microsoft color-matches the light-up Xbox button to the controller.

But the standard-issue Xbox pad isn’t just great because of its connectivity. The hardware itself is excellent for the controller’s $60 asking price. The sticks, buttons, triggers, and the sunken dish-shaped D-pad all feel impeccably tight, with the latter having a satisfying clickiness to it. If you’re a hardcore fighting game fan, you may be better served by an arcade stick or a controller geared toward that genre — one with an impeccable D-pad like Hori’s Horipad Pro — but the Xbox Wireless Controller is an exceptional jack-of-all-trades.

The only things it really lacks compared to pricier options are extra, customizable buttons and software tuning for things like stick sensitivity, though Microsoft does offer cosmetic customization through its Xbox Design Lab, which ranges from $69.99 to $99.94 depending on the configuration. There’s a lot to love about these controllers, whether you make your own or pick out one from the various colors Microsoft continues to offer.

The best cheap Xbox controller

The PowerA Enhanced Wired Controller propped up against an Xbox Series X.

$38

The PowerA Enhanced Wired Controller is a budget-minded wired controller for Xbox and PC that connects via Micro USB and features two customizable buttons on its rear. It’s offered in many different colors and licensed designs.

Connectivity: Wired / Connector type: Micro USB / Mappable rear buttons: Two / Software customization: No / Power: Wired

If you’re looking for a great controller but don’t have a lot of money to spend — and you don’t mind a cable — PowerA’s Enhanced Wired Controller offers an impeccable value without sacrificing too much. Its full retail price is $37.99, but some color schemes can dip as low as around $25. Speaking of colors, the Enhanced Wired Controller comes in a wide variety of hues and designs, including licensed ones from game franchises like Mass Effect and Fallout. Some of these designs may make you suspect these are cheap, cringe-inducing knockoffs, but the quality of the controller may surprise you when you use it.

PowerA’s Enhanced Wired Controller is quite a great bargain, with all kinds of colors and unique designs.

The customizable rear buttons are easy to operate without getting in the way.

If only this controller had USB-C instead of microUSB.

First off, let’s get its biggest downside out of the way: it uses a microUSB connection (gross, I know). You at least get a lengthy, detachable cable with it, but not having a reversible connector is annoying. Thankfully, nothing else about this controller feels so outdated. Its build quality is just fine, and it even has two mappable rear buttons built into the grips — which is great to have at such a low price.

The rest of the PowerA Enhanced Wired Controller is a whole lot of table stakes, but it executes everything quite well for a ridiculously affordable price. There’s no impulse trigger rumble, but if there’s any feature to cheap out on, I’d say that’s the right choice. On the flip side, the Enhanced Wired Controller comes with a two-year warranty, which is twice as long as pricey options like Microsoft’s Elite Series 2 offer.

PowerA offers a whole lot of bang for your buck with the Enhanced Wired Controller if you’re on a tight budget. It also sells the Advantage Wired Controller, which is essentially a newer version of the Enhanced Wired Controller with USB-C and hair-trigger lockouts. The Advantage could be a shoo-in to dethrone the Enhanced Wired as the best budget controller, but at $37.99, it doesn’t match the Enhanced Wired frequently-discounted price of around $25.

If you have Elite controller tastes but a standard controller budget, the PowerA Fusion Pro 3 is a fine alternative if you don’t mind that it’s wired. It looks a bit like the Microsoft Elite Series 2, complete with four rear buttons, trigger lockouts, and rubberized grips, but costs much less. The Fusion Pro 3 is significantly lighter than its predecessor, plus it has a more compact case and is $10 cheaper — offering quite the value for $79.99 (especially if it starts going on sale). The older Fusion Pro 2 is still fine, especially if you prefer detachable rear paddles to built-in buttons, but at this point, it’s only worth it for that preference or if it’s heavily discounted.

The Fusion Pro 3 is the latest version of PowerA’s affordable alternative to premium controllers like the Xbox Elite Series 2. It comes with swappable sticks, friction rings, a compact zip-up case, and features four programmable buttons built into its rear.

The best premium Xbox controller

$180

The Xbox Elite Series 2 is easily one of our favorite controllers at The Verge. It’s an improvement on the already excellent Elite controller, with deep customization, optional rear paddle buttons, a swappable D-pad, and analog sticks that allow you to tailor its layout to suit your play style.

Connectivity: Xbox wireless, Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: Up to four / Software customization: Yes / Power: Built-in rechargeable

The Xbox Elite Wireless Controller Series 2 is Microsoft’s fancied-up, premium version of the stock controller. It’s also older, having been released a year before the Xbox Series X / S consoles arrived. So while it does sport a USB-C port and wireless support, it lacks the convenient Share button found on the latest Xbox Wireless Controller. However, it makes up for that in droves with exceptional build quality, extra buttons, user-swappable sticks and D-pad, and lots of customization.

If you pick up an Xbox Elite controller, you instantly recognize the quality of materials put into it. Where the standard controller uses an unassuming plastic build, the Elite mixes higher-quality plastic with rubberized grips and bits of metal. Combine this with its built-in rechargeable battery, and the Elite is noticeably heavier than its cheaper brethren. It also comes with a charging dock and zip-up case with passthrough charging.

The Xbox Elite Series 2 is made from premium materials but has a nice, subdued aesthetic.

The metal, dish-like D-pad is a small work of art. Sadly, however, it’s a far cry from the best D-pad around.

The four removable paddles on the rear sit beneath the trigger locks and charging dock pins.

As excellent as the fit and finish are, the key components that may give you a competitive edge are the hair-trigger locks and rear paddle buttons. In theory, the hair trigger gets shots off faster when playing shooters, and the rear paddles allow you to jump, crouch, reload, etc., without taking your thumb off the right stick for aiming. However, using that many buttons on the back of the controller definitely takes some adjustment. You have to train new muscle memory, and since it requires dexterity with more fingers, they’re not for everyone.

These premium features come at a steep cost, too. The Elite Series 2 is normally priced at $179.99, and even though it’s dropped as low as $139.99, it’s still more than twice as expensive as a regular Xbox controller. You have to really want its extra features and user customization, and if you’re not using its rear paddles or the software adjustments for stick sensitivity, you’re not getting your money’s worth. (And if you want to customize the colors, you’re looking at $209.99 for the Design Lab “Elite Package.”)

Microsoft also has a stripped-down Elite Series 2 “Core” version with an MSRP of $129.99, which is the same controller in white-and-black, red-and-black, or blue-and-black finishes without the rear paddles, accessory charging case, or extra stick toppers and D-pad. You can get all of those in a $30 accessories pack, which turns the Elite Series 2 Core back into a standard Elite Series 2 and actually makes it a slightly better deal if the full package isn’t on sale.

You must also be aware that the Elite has a bit of a reputation for lackluster quality control, with horror stories from users about going through multiple replacements under warranty. Microsoft extended the controller’s warranty from 90 days to a year in late 2020 to help address concerns, but buying an Elite Series 2 may still feel like a slightly risky proposition. However, when you nail that perfect sequence — switching to your pistol and landing a headshot with a quick pop-pop of the hair trigger while your thumbs stay firmly planted on the sticks — it can feel worth it.

Read our Xbox Elite Wireless Controller Series 2 review.

A formidable alternative to the Elite

$220

Scuf’s Instinct Pro is its top-tier controller for Xbox consoles and PC. It’s one of the only third-party wireless options around, and for its very high price, you get rubberized grips, built-in mappable rear paddle buttons, hair-trigger locks, swappable sticks, and user-configurable cosmetics.

Connectivity: Xbox wireless, Bluetooth, wired / Connector type: USB-C / Mappable rear buttons: Four / Software customization: No / Power: AA batteries or add-on rechargeable

The Scuf Instinct Pro finds itself in a bit of a weird spot. It’s one of the only wireless options currently available from a third party — Razer’s new Wolverine V3 Pro is another — but it’s also one of the most expensive Xbox controllers around (it starts at $199.99). The one I tested clocked in at $263.91 with a special faceplate and added color accents. That’s more than the Xbox Series S occasionally sells for, which is an entire console. Still, you’re in for a treat if you’re okay with spending that kind of money, as the Instinct Pro is arguably better than Microsoft’s Elite in some very specific ways — primarily, its comfort and implementation of rear buttons and hair triggers.

Scuf’s Instinct Pro is ultra-premium and very customizable — for an added cost.

The magnetic faceplate and sticks are easy to pop off and swap out.

Scuf’s rear rocker buttons and textured rubber grips are intricately detailed.

The Instinct Pro has very unique rear buttons, and I actually prefer them. Instead of paddles, there are four rocker-like buttons built into the controller’s body that you push toward or away from your hand with a middle finger. It still requires training your brain a bit to get accustomed to it, but I found them more intuitive.

Rear buttons aside, the Scuf’s other big feature is its hair triggers, which have the quickest response of all the controllers tested here. Just flick a switch on the back, and the left and right triggers feel like you’re clicking a mouse — it’s incredibly satisfying. The hair triggers, rear buttons, and the excellent textured grip material on the controller’s underside make this controller a joy to use.

The Instinct Pro feels like Scuf essentially hot-rodded a stock Xbox controller, but like any boutique item, it comes with a massive cost. Meanwhile, it still uses AA batteries and lacks software customization, so as much as I enjoy using it, I’d only advise getting one if you’re super passionate about its very specific qualities or you absolutely love the colorful accents and magnetically swappable faceplates on Scuf’s configurator.

The best customizable controller

The RIG Nacon Revolution X is a wired controller for Xbox consoles and Windows PCs that offers a slew of detailed software customization options. It’s also got four customizable rear buttons, adjustable sticks, and optional weights to insert into the grips to give it more heft.

Connectivity: Wired / Connector type: USB-C / Mappable rear buttons: Four / Software customization: Yes / Power: Wired

RIG’s Nacon Revolution X may be worthy of an award for terrible naming, but its real strengths are in its deep customization. If you’re the type that likes to endlessly tinker with lots of detailed settings, this is the controller for you. Normally priced at $99.99, the wired Revolution X and its added features don’t come cheap, but the price is a little fairer when you consider the competition it squares up against.

When you first pick up the Revolution X, it seems very unassuming — and borderline cheap. While it’s not a looker, it’s a form-follows-function type of controller. It’s comfy to use, and its four rear buttons built into the grips are large and nicely contoured. The real stars of this show, however, are the analog sticks and their software customizations, as well as the expansive custom options for other inner workings of the controller.

The Nacon Revolution X looks a little cheap at first, but its premium features are steeped in deep customization.

The rear grip covers open up to allow the optional weights to be added.

The controller, cable, stick tops, grip weights, and stick rings are all packaged in the included zipper case.

While other user-customizable controllers have three user profiles you can swap between on the fly, the Revolution X has four — plus a “classic” mode with basic settings and a ring of RGB light around the right stick to remind you what mode you’re in. The software app is not the most user-friendly, but the controls go very in-depth. Thankfully, there are helpful starting points with presets for arcade fighting games, racing, FPS games, and even sniping, which makes the options much easier to understand. Add the ability to customize and remap every button on the controller, as well as a Dolby Atmos for Headphones app license, and you’ve got a lot of customization options.

The customization doesn’t stop with software, audio, or lighting, however. The Revolution X comes with ring spacers to adjust the range of the analog sticks, too, as well as a series of small weights ranging from 10g to 16g, which you can insert into its grips to give them an additional amount of heft.

Adding up all these features, you see why the Nacon is such a great controller for tinkering. It took me time to warm up to it, but upon setting it up the way I preferred, it made for a very compelling controller in a variety of game types.

The best controller for shooters

Turtle Beach’s Recon Controller is a USB-C-wired gamepad that offers a great deal of audio tweaking for wired headsets. Its Superhuman Hearing mode draws out footsteps and gunfire in the mix, and the two rear buttons help make it great for FPS games.

Connectivity: Wired / Connector type: USB-C / Mappable rear buttons: Two / Software customization: No / Power: Wired

Turtle Beach is known for its headsets, so it makes sense that its Recon wired controller features some robust audio controls. Its strengths really come into focus when playing first-person shooters, where its Superhuman Hearing mode tweaks the audio of any wired headset to draw out footsteps and distant gunfire in the mix. At its regular price of around $60, and once selling as low as $39.95, the Recon is a fairly affordable way to gain a slight competitive edge in multiplayer games without spending well over $100 on a controller.

The Turtle Beach Recon controller’s biggest strengths lie in its plethora of audio controls.

It’s a bit much to take in at first, but these buttons allow for very handy audio controls when using a wired headset.

The bumpers, shoulders, and customizable rear buttons have an excellent textured pattern that feels great.

This pad isn’t going to win any beauty contests thanks to all those awkward buttons located smack-dab in the middle of its forehead, but each one has a valid purpose. There are four levels of microphone monitoring, overall game volume controls, game chat volume mix, four EQ presets, four programmable modes for mapping the two rear buttons, and four levels of optional right-stick sensitivity adjustments. That last feature, dubbed Pro Aim by Turtle Beach, lowers the sensitivity of the right analog stick while you hold the right-hand rear button, allowing for very small movements like sniping, though it’s a bit clumsy to use.

Learning to use all these controls may sound daunting, but the controller’s quick-start guide makes it easier. Superhuman Hearing is very helpful for shooters and worth using extensively for games like Halo Infinite — just be aware that it’s going to muddy up the soundtrack a little, so you may want to leave it off during story-driven, single-player games.

Audio controls aside, the Recon lacks fancy features like hair triggers and swappable thumbsticks, and the D-pad looks like the standard Xbox Wireless Controller but pales in comparison. The controller’s plastic build feels cheap, but the rubbery grips redeem it with a nice and comfy feel. As for the sticks, triggers, and additional rear buttons, they all feel tight and snappy. Combine that with Superhuman Hearing, and you’ve got a great recipe for shooters. The Recon has a bit of a learning curve, but if you play ranked matches and value a fairly priced wired controller with extra buttons and helpful audio functions, you can’t go wrong here.

Read our Turtle Beach Recon review.

Other controllers worth knowing about

  • The GameSir G7 is a terrific wired controller with a textured grip that feels a tiny bit like a Scuf, clicky face buttons like a Razer, and two programmable rear buttons. Its D-pad is a little too stiff, but what makes this gamepad unique is it comes with two magnetic face plates — one black, one white — that are primed for personalization with spray paint or markers.
  • The more interesting GameSir controller is the G7 SE, which is nearly the same as the G7 but with drift-free Hall effect thumbsticks. If you’ve ever been jilted by stick drift on any of your Xbox controllers before, the GameSir G7 SE is well worth its $49.99 asking price to ease your concerns.
  • 8BitDo’s Ultimate Wired Controller for Xbox and PC is a quality, affordable gamepad with two rear buttons and software customization, though the lengthy USB cable is not detachable. It costs $44.99 but is often discounted to as low as $35.99. We once saw it dip to $24.99, and if that started happening with regularity, it could dethrone the PowerA Enhanced Wired as the best budget option.
  • Turtle Beach’s React-R is a stripped-down Recon that maintains Superhuman Hearing and rear buttons but omits EQ presets, mic monitoring, and Pro-Aim for a lower $39 price. It’s a good value, especially if you find it on sale for as low as $29.99, maintaining some of the best features of the Recon for cheaper.
  • Razer’s Wolverine V2 Chroma is a feast for the ears and eyes, thanks to very clicky buttons and a strip of RGB lighting along the grips. It has more customizable buttons than any other controller (six total), though their positioning requires reaching, and it’s a bit pricey.
  • Razer also recently introduced the $199.99 Wolverine V3 Pro, which is the company’s first fully wireless controller for Xbox consoles and the first Razer gamepad to sport drift-free Hall effect sticks. The premium controller also features hair-trigger lockouts, RGB accent lighting, and six remappable buttons (including four customizable paddles and two extra shoulder buttons). It remains to be seen whether it can go toe-to-toe with the Xbox Elite Series 2 and Scuf Instinct Pro, but we’ll be sharing our impressions soon.
  • Briefly mentioned above, the Horipad Pro has one of the best D-pads around. It also offers a lot of software customization at an affordable price, but its shoulder buttons are a bit stiff.
  • PowerA’s Nano Enhanced Wired Controller is an adorably small guy for people with tinier hands or children. Unlike most kid-centric gamepads, it looks just like a full-size model, and unlike our budget pick from PowerA above, it ditches microUSB for USB-C (hallelujah!).
  • The Nacon Pro Compact Controller has some of the Revolution X’s excellent software customization at a much lower price. It’s also one of the smaller options around, though the ergonomics may feel hit or miss depending on your hand size.
  • One of the dumbest yet most endearing controllers is the Hyperkin Duke. This reissue of the original Xbox pad is a love letter to the salad days of 2001. It’s just not great to use for modern games. Thankfully it comes with a display stand, as it’s more of a collector piece.
  • Unlike the Duke, the Hyperkin Xenon is a reissued gamepad that’s actually worth using, especially if you have an affinity for the mid-aughts Xbox 360 design. The original 360 controller’s biggest innovation was its intuitive wireless system, which is sadly absent from this wired reincarnation. But hey, at least Hyperkin improved on the Xbox 360 controller’s awful D-pad and included some cool color-matched USB-C cables.
  • I also tested the Turtle Beach Recon Cloud and PowerA MOGA XP-Ultra. While the latter is noteworthy for being the first third-party wireless Xbox controller, neither made the cut due to high costs and niche use cases. The recommendations above present better alternatives unless you really want to use a controller with an Android phone — which, frankly, you can do with a standard Xbox controller and a cheap phone clip.
  • The Turtle Beach Stealth Ultra is an interesting controller. It has a 1.5-inch display for adjusting audio settings (and checking social media, apparently), swappable Hall effect sticks, microswitches, hair triggers, remappable rear buttons, and customizable RGB lighting. It’s the brand’s first fully wireless Xbox controller, too, and comes with Bluetooth to allow compatibility with other platforms. All of these features contribute to the controller’s $199.99 price tag, which puts it in the ultra-premium territory that Turtle Beach hasn’t dabbled in until now.
  • Modular controllers are getting a little funkier with the release of Thrustmaster’s eSwap X2 Pro. We haven’t tested it and thus can’t recommend the wired Xbox / PC gamepad, but we’re putting it on the radar for those who might appreciate having hot-swappable analog sticks, triggers, grips, and D-pad. It’s one of the only customizable controllers we’ve seen that lets you rearrange the positioning of D-pads and sticks however you want, and you can even buy a racing module that’s meant to simulate a steering wheel. Unfortunately, none of the analog stick modules feature Hall effect sensors, and there are quite a few reports that the standard mini-stock modules are prone to degrading after a short time.
  • PDP’s Victrix Pro BFG (wireless) and Victrix Gambit Prime (wired) are another pair of modular controllers getting decent reception right now, though we haven’t tested them yet. Both allow you to remove modules and swap in others, including alternate D-pad designs, taller thumb sticks, hexagonal gates for the analog sticks, and even a fighting pad that gives you six frontal face buttons. The controllers also have programmable rear buttons and customizable hair triggers (the Gambit Prime uniquely lets you customize the back paddle to give you access to two or four extra buttons), but their lack of rumble may be a nonstarter for some.

Photography by Antonio G. Di Benedetto / The Verge

Update, September 26th: Adjusted pricing and links. Brandon Widder also contributed to this post.

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Trump Says US Banks Can’t Do Business in Canada. It’s Not That Simple.

Hours after imposing steep tariffs on Canada, President Trump raised an issue that even the American lenders whose cause he’s championing find perplexing: the access, or lack thereof, of U.S. banks to the Canadian market.

On Tuesday, Mr. Trump wrote in a post on Truth Social, “Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market.” He added sarcastically, “Oh, that seems fair to me, doesn’t it?”

While this issue doesn’t often come up in conversations with prominent American bank executives, it appears to be increasingly on the president’s mind.

Mr. Trump mentioned the Canada banking issue early last month as part of a broader criticism against what he views as the unequal economic balance between the United States and its northern neighbor. Writing on Truth Social, Mr. Trump said Canada “doesn’t even allow U.S. Banks to open or do business.”

Here is the actual state of play for U.S. banks in Canada:

Canada’s banking sector is dominated by the “Big Six,” the half-dozen institutions including the Royal Bank of Canada and TD Bank. They are permitted to take deposits, extend mortgages and advise corporate clients — all the core activities for banks. And Canadian customers disproportionately still prefer to do their banking in person, as opposed to online, meaning it would require a major physical presence for any entrant to attempt to enter the market.

Additionally, U.S. banks are restricted in what they can do in Canada.

Foreign banks, including American ones, must either work with a Canadian middleman, establish a Canadian subsidiary or receive special government permission to do business. Unless they agree to follow Canada’s stringent banking rules that include holding a hefty sum of cash-like assets in reserve at all times, they cannot operate retail branches that take deposits under around $100,000.

Given how dominant Canada’s homegrown banks are, any international bank that tries to compete faces “an additional regulatory burden for what would begin as a small prize,” said James R. Thompson, associate professor of finance at the University of Waterloo.

The upshot is that U.S. banks have minimal operations in Canada. The largest American lender, JPMorgan Chase, says it has roughly 600 employees in Canada, out of more than 300,000 worldwide. Many international banks limit themselves to areas that don’t involve lending, such as offering investment advice to wealthy Canadians or local companies.

So Mr. Trump is incorrect in asserting that American banks cannot do any business in Canada, but it is true that they are hamstrung in their activities.

While there are more than 4,000 banks in the United States, Canada has just a few dozen, and more than three-quarters of deposits are held by the Big Six.

For decades, Canadian political leaders have crowed about that restrictive financial regulatory model. They argue that fending off foreign entrants in the country’s mortgage market helped the country largely avoid the 2008 collapse south of its border.

In light of Mr. Trump’s criticism, Maggie Cheung, a spokeswoman for the Canadian Bankers Association, was quick to point out on Tuesday that foreign banks were an integral part of the banking landscape. She said 16 U.S. banks were operating to some degree in Canada, with a cumulative of nearly $79 billion in assets — a statistic that the nation’s prime minister, Justin Trudeau, also cited on Tuesday.

“American banks are alive and well and prospering in Canada,” Mr. Trudeau said.

But in relative terms, their successes are small. U.S. bank assets represent 1 to 2 percent of the $6.5 trillion held by banks operating in Canada writ large.

“The major impediment faced by U.S. banks,” said Laurence Booth, professor of finance at the University of Toronto, “is simply they can’t compete with the Canadian banks as they don’t have the scale, while they can’t take any of them over as there are restrictions on foreign ownership.”

International banks — including Canadian ones — are largely free to establish U.S. arms. The United States is a more attractive target for international banks than Canada, both because it is a hub for world finance and because its market permits more exotic, higher-profit lending activities like 30-year mortgages. (The most common mortgage in Canada carries a five-year term.)

The largest Canadian bank in America, TD Bank, operates more than 1,000 U.S. branches through a Delaware subsidiary. That size puts it in line with well-known regional lenders like Citizens and Fifth Third.

The Canadian Bankers Association said the six largest Canadian lenders held less than 3.5 percent of U.S. bank assets.

Big U.S. banks had plenty of hopes that Mr. Trump would decrease regulations, encourage merger activity and slash taxes. Expanding their presence in Canada was not on the list.

A U.S. banking industry trade group, the Bank Policy Institute, said Tuesday that it had released no statements on the matter, and no bank chief executive has taken up the rallying cry.

More pressing for the global banking industry are Mr. Trump’s tariffs, which have helped push the industry’s stocks down 8 percent over the past month, according to the KBW Nasdaq Bank Index.

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Trump’s New Tariffs Could Strain Collection of Customs Fees

The sweeping tariffs on Canadian, Mexican and Chinese products that President Trump imposed on Tuesday could strain the system that collects import duties and the government agencies that enforce those fees, trade and legal experts said.

Collecting import duties is usually a routine task, but the new tariffs are being imposed on Mexican and Canadian goods, many of which have been imported into the United States duty-free for many years. Adding to the challenge is the sheer volume of goods subject to the new tariffs — U.S. imports from China, Mexico and Canada totaled over $1.3 trillion last year, or about two-fifths of all imports.

The tariffs apply a 25 percent duty on goods from Mexico and Canada and an additional 10 percent on imports from China.

Importers typically employ customs brokers to calculate and pay tariffs to the government agency that collects them, U.S. Customs and Border Protection.

Adam Lewis, a co-founder and the president of Clearit, a customs broker, said that it would not be hard to tweak software to collect the new tariffs, but that a crucial part of the tariffs payment system might need significant adjustments. Importers must buy a “customs bond,” a type of insurance that guarantees the duties will be paid. Mr. Lewis said some customers might have to increase the size of their bonds to cover the extra tariff payments.

“Many of their products were coming in duty-free, and all of a sudden there’s going to be a 25 percent increase,” he said. “It’s quite large.”

In addition, policing importers for tariff evasion will now become a much bigger task for Customs and Border Protection and the Department of Justice. Some importers may try to avoid tariffs by understating the cost of goods in customs declarations or by falsely claiming they were imported from countries not subject to tariffs.

“The greater the breadth and severity of these new tariffs, the greater the likelihood that at least some potential importers may want to misrepresent the value or the origin of their goods,” said Kirti Vaidya Reddy, a former federal prosecutor who is now a partner at the law firm Quarles.

If the government finds that an importer has not paid duties, customs officials are likely to demand that the importer pay what is owed and a penalty that can double or even triple the amount due.

In a statement, a customs agency spokeswoman said: “The dynamic nature of our mission, along with evolving threats and challenges, requires C.B.P. to remain flexible and adapt quickly while ensuring seamless operations and mission resilience. These tariffs will help maintain America’s global competitiveness and protect American industries from unfair trade practices.”

Some evasion cases have become the subject of criminal prosecutions. Last year, a Miami importer pleaded guilty to participating in an import scheme involving Chinese truck tires that the Justice Department said had cost the United States more than $1.9 million in forgone tariff revenue.

But stepping up enforcement efforts is likely to require that the Justice Department devote significantly more staff to pursuing tariff evasion cases, which, lawyers said, can take time to build.

“The Department of Justice has the personnel and infrastructure to do it, but these cases are complex, transnational and document-heavy,” said Artie McConnell, a former federal prosecutor who is a partner at the law firm BakerHostetler. “You can’t rush it, and prosecutions likely won’t come quickly.”

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China Retaliates Against Trump, Imposing Tariffs and Blacklisting U.S. Companies

Minutes after President Trump’s latest tariffs took effect, the Chinese government said on Tuesday that it was imposing its own broad tariffs on food imported from the United States and would essentially halt sales to 15 American companies.

China’s Ministry of Finance put tariffs of 15 percent on imports of American chicken, wheat, corn and cotton and 10 percent tariffs on other foods, ranging from soybeans to dairy products. In addition, the Ministry of Commerce said 15 U.S. companies would no longer be allowed to buy products from China except with special permission, including Skydio, which is the largest American maker of drones and a supplier to the U.S. military and emergency services.

Lou Qinjian, a spokesman for China’s National People’s Congress, chastised the United States for violating the World Trade Organization’s free trade rules. “By imposing unilateral tariffs, the U.S. has violated W.T.O. rules and disrupted the security and stability of the global industrial and supply chains,” he said.

President Trump has contended his tariffs are essential to stopping the flow into the United States of fentanyl, a synthetic opioid that has caused hundreds of thousands of deaths through overdoses.

But the U.S. imposition of tariffs “will deal a heavy blow to counternarcotics dialogue and cooperation,” Lin Jian, a spokesman for China’s Ministry of Foreign Affairs, said at a news briefing.

Mr. Trump has now tagged almost all goods from China with an extra 20 percent in tariffs since taking office in January. He announced 10 percent tariffs on Feb. 4 and another round on Tuesday. Mr. Trump also moved ahead on 25 percent tariffs on Mexico and Canada on Tuesday, after a monthlong delay.

China had responded to the February tariffs by immediately announcing that it would start collecting, six days later, additional tariffs on liquefied natural gas, coal and farm machinery from the United States. But those tariffs combined hit only about a tenth of American exports to China, making them much narrower than Mr. Trump’s comprehensive tariffs.

China’s action on Tuesday was much broader. China is the top overseas market for American farmers, wielding considerable influence over prices and demand in the commodities markets of the Midwest.

By targeting imports of food, Beijing repeated its response to tariffs that Mr. Trump imposed during his first term. China put tariffs on American soybeans in 2018 and shifted much of its purchasing to Brazil.

But the strategy backfired then: Mr. Trump responded by placing more tariffs on Chinese goods. Because China sells much more to the United States than it buys, it quickly ran out of American goods to impose tariffs on. And American farmers had some success in finding other markets for their crops.

China’s tariffs in 2018 also had less of a political impact in the United States than Beijing’s leaders had hoped. In 2018 Senate elections in three of the top soybean-exporting states, voters gave little evidence they held the Chinese action against Mr. Trump or the Republican Party. All three states saw Democratic senators replaced with Republicans that year, as social issues proved more compelling for many voters than trade disputes.

Yet China has potential trade weapons that go beyond tariffs on food. In early February, Beijing implemented restrictions on exports to the United States of certain critical minerals, which are used in the production of some semiconductors and other technology products.

Blocking key materials from reaching the United States, a tactic known as supply chain warfare, carries considerable risks for China. Beijing is struggling to attract foreign investment. China’s leaders have also stated that attempting to bolster the country’s domestic economy, weighed down by the fallout of a devastating real estate slowdown, is a priority.

Beijing could make it even harder for American companies to do business in China, but that could also hurt foreign investment. In addition to effectively preventing 15 companies from buying Chinese goods, China’s Ministry of Commerce added another 10 American companies on Tuesday to what it calls an “unreliable entities list,” preventing them from doing any business in China.

Many of the companies that China penalized on Tuesday are military contractors. But the Ministry of Commerce also blocked imports from the biotech firm Illumina. It accused Illumina, which is based in San Diego, of violating market transaction rules and discriminating against Chinese companies.

Chinese market regulators said in early February, after Mr. Trump imposed tariffs, that they had launched an antimonopoly investigation into Google. Google has been blocked from China’s internet for more than a decade, but the move could disrupt the company’s dealings with Chinese companies.

Mr. Lou, the National People’s Congress spokesman, signaled his country’s emerging strategy in dealing with Mr. Trump’s tariffs by calling for closer trade relations with Europe.

“China and Europe can complement each other’s strengths and achieve mutual benefit in many areas of cooperation,” he said at a news conference ahead of the opening on Wednesday of the annual weeklong session of China’s legislature.

But Europe has its own trade disputes with China, notably over electric vehicles. European politicians and business leaders have voiced concern about how to cope with an expected further flood of exports this year from China, which has embarked on a far-reaching factory construction program.

China’s rapid rise since 2000 to global pre-eminence in manufacturing, with a third of the world’s output, has come to a considerable extent at the expense of the American share of global industrial production, according to United Nations data. European nations have been wary of closing factories and relying on low-cost imports from China.

Mr. Trump has moved much faster on China tariffs during his second term than he did in his first. In 2018 and 2019, he imposed tariffs of up to 25 percent, in stages, on imports worth about $300 billion a year. He then concluded a trade agreement with China in January 2020, leaving in place 25 percent tariffs on many industrial goods while cutting 15 percent tariffs on some consumer products to 7.5 percent and canceling a few other tariffs.

By contrast, Mr. Trump has now imposed 20 percent tariffs on all goods that the United States imports from China, worth about $440 billion a year. That includes some products, like smartphones, that he omitted during his first term.

Mr. Trump’s actions this year have raised average tariffs on the affected Chinese imports to 39 percent — compared with just 3 percent before he took office in 2017. Apart from China, Canada and Mexico, the United States imposes tariffs averaging about 3 percent on most trading partners.

China’s average tariffs on goods from most of the world are twice as high, and much higher on imports from the United States.

In Mr. Trump’s first term, the Chinese government reduced taxes that it charges the country’s exporters. That gave them room to cut prices and offset at least part of the tariffs for their customers, which include many small American businesses as well as big retailers like Walmart, Amazon and Home Depot.

As another way around tariffs, some Chinese exporters shifted the final assembly of their products to countries like Vietnam, Thailand or Mexico, while keeping the production of core components in China. Mr. Trump is now trying to stop some of the trade through Mexico, which critics of Chinese exports see as a backdoor into the U.S. market.

Many Chinese exporters resorted to using the so-called de minimis exception to tariffs: dividing shipments into many packages, each with a value of less than $800. Each shipment is then exempt from tariffs and customs processing fees and mostly omitted from customs inspections and American imports data.

At least $1 of every $6 worth of American imports from China is now arriving through these de minimis shipments.

In early February, Mr. Trump issued an order briefly halting the de minimis tariff exemption for goods from China, Mexico and Canada. After packages quickly accumulated at American airports, he delayed the order for shipments from China until procedures could be developed to handle them, and postponed for a month his order for de minimis imports from Canada and Mexico. On Sunday, he again delayed action on those imports from Canada and Mexico.

Wu Xinbo, dean of the Institute of International Studies at Fudan University in Shanghai, said that by retaliating now, “China sends a strong signal to the Trump administration that a unilateral tariff doesn’t work — you have to sit down to talk to us and to negotiate with us.”

Alexandra Stevenson contributed reporting from Beijing, and Chris Buckley and Amy Chang Chien from Taipei. Li You contributed research.

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