United States and Canada impose steep reciprocal tariffs on each other

The United States put 50% tariffs on around $20 billion of Canadian goods last weekend, after trade talks broke down. Canada quickly announced its own tariffs on American products, including steel, dairy, and farm equipment. These will start on September 18.

Both countries are likely to see higher prices. Vehicles, food, and energy could all cost more. The Canadian government has warned that American petrol prices may rise by $0.75 per gallon. In Quebec alone, up to 100,000 jobs could be lost.

Economists say Canada could enter a recession within six months if the tariffs stay in place. The two countries have close economic ties and a long history of free trade. No talks were happening at the end of August.