Tariff Tensions Escalate Between US and Canada

The ongoing trade dispute between the US and Canada is causing significant economic strain for both countries. The US has imposed tariffs on various Canadian goods, including steel, aluminum, lumber, and automobiles, with an additional 50% levy on C$28bn worth of Canadian products taking effect on August 22.

Canada has retaliated with its own tariffs on US goods, targeting sectors such as auto parts and assembly plants in Ontario. The province is estimated to have lost tens of thousands of manufacturing jobs since early 2025, with Quebec's metal exports falling by 36% between February 2025 and 2026.

The Royal Bank of Canada has identified Ontario and Quebec as the provinces most affected by US sectoral tariffs. In response, Canada's counter-tariffs are expected to weigh heavily on Ohio, where C$3.2bn, or 12%, of exports will soon face Canadian tariffs.