What tariffs will really cost Canadians and Americans
Summary
The United States and Canada have increased tariffs on each other's goods, escalating their ongoing trade dispute. These new taxes mainly affect cars, building materials, and household items, likely leading to higher costs for consumers and businesses on both sides of the border.Key Facts
- President Donald Trump has threatened to raise tariffs on Canadian cars and auto parts from 25% to 50% starting in 2027.
- Canada has imposed retaliatory tariffs, including a 25% import tax on some American vehicles and 50% tariffs on steel and aluminum.
- Tariffs on construction materials like steel, aluminum, lumber, plywood, and screws raise costs for homebuilders and may increase housing prices.
- The US imported $23 billion worth of wood products in 2024, nearly half from Canada.
- Canada’s new tariffs also target household products such as carpets, washing machines, furniture, and kitchen utensils.
- Economists say higher tariffs will likely increase prices for consumers and strain manufacturing supply chains.
- Car dealerships in the US have so far absorbed most tariff costs, but that is expected to change, affecting car prices.
- The long-running "lumber wars" between the US and Canada continue to affect trade on softwood used in construction.
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