US-Canada Trade War Escalates as Tariffs Bite

The US and Canada are locked in an ongoing trade dispute that shows no signs of resolution. Since President Donald Trump's return to the White House, tensions have been simmering between the two neighbors.

Tariffs imposed by the US on Canadian goods include steel, aluminum, lumber, and automobiles, with a 50% levy slapped on about C$28 billion ($20 billion; £15 billion) of Canadian imports last week. In response, Canada has launched its own counter-tariffs on American goods.

While the impact of these tariffs is more pronounced in some states than others, Ohio is expected to be one of the hardest hit, with C$3.2 billion (12%) of its exports soon facing Canadian tariffs. The tax on steel and laundry machines will particularly hurt the state's economy.

Some businesses are adapting to the situation by finding new markets for their products. Outclass, a Toronto-based menswear clothing company, has started attending trunk shows in Paris instead of New York to reach more customers in Europe.