U.S. tariffs and Canadian retaliation squeeze consumers and industries, deepening long-standing trade disputes between neighbors.
President Donald Trump's escalating trade fight with Canada is squeezing the economy north of the border, threatening jobs and adding to families' financial strain as steep U.S. tariffs on roughly $20 billion in goods remain in place.
U.S. tariffs have hammered the country's steel, aluminum, lumber and automobile producers that depend heavily on the American market. Steel exports have fallen by roughly half since the tariffs took effect, while lumber exports were about 20% below 2024 levels earlier this year, according to the Bank of Canada. Production and jobs have also declined in some of the hardest-hit industries.
Canadian families are feeling the squeeze, too. Consumer prices were 3% higher in August than a year earlier, with grocery prices up 2.8% and transportation costs jumping 7.5%, according to the government's own data.