Canada Slaps Tariffs on $20 Billion in US Goods

The Canadian government has announced plans to impose tariffs of up to 50% on $20 billion worth of US goods, effective September 8. According to Dr. Jin Lau, an economics professor at Marist University, this move is likely to have limited impact on the average American household.

Dr. Lau notes that only about five percent of Canada's exports to the US are affected by these tariffs, and major exports such as oil, natural gas, and potash are excluded from the list.

However, lower-income households may be more affected, as they tend to spend a larger share of their income on necessities and have less room in their budgets to absorb higher prices.

The Canadian tariffs cover over 700 US goods, including food, clothing, furniture, and household products. Several analysts believe that Canada and the US will reach a deal before the September 8 deadline, as Canada's economy relies heavily on the US market.