United States and Canada impose reciprocal tariffs in escalating trade dispute

The United States put 50 percent tariffs on Canadian goods on August 22, 2026. Canada responded by placing its own tariffs on about C$28 billion of American products, including steel, furniture, and cosmetics. These Canadian tariffs took effect on September 8.

Ohio has been hit hardest among US states. Around 12 percent of its exports to Canada, worth C$3.2 billion, are now subject to the new tariffs. Illinois and Pennsylvania are also badly affected. In Canada, Ontario and Quebec face the greatest disruption.

Prices are expected to rise for shoppers on both sides of the border. Low-income consumers will likely feel the pressure most. Analysts warn that tens of thousands of jobs could be lost if the USMCA trade agreement breaks down.