What the U.S. and Canada’s Trade War Could Mean for Prices

A slew of goods moving between the U.S. and Canada are being hit by sweeping tariffs as the trade war between the allied nations intensifies, threatening to raise prices for consumers on both sides of the border.Retaliatory Canadian tariffs on about $20 billion worth of American products, which Prime Minister Mark Carney said his government would enact after trade talks between the two countries broke down last month, went into effect on Tuesday.The new tariffs are intended to match “dollar for dollar, rate for rate” the ones that U.S. President Donald Trump’s Administration has levied on Canadian imports. The U.S. imposed 50% tariffs on roughly $20 billion worth of Canadian goods that went into effect the day after negotiations collapsed in August.The trade war is set to further escalate later this month: the Trump Administration said on Tuesday that it will bar the import of certain dairy products, motorcycles, and alcoholic drinks from Canada, starting on Sept. 29. The announcement comes after several Canadian provinces prohibited American alcoholic beverages from being sold last year.There is no clear resolution to the conflict on the horizon, and both Trump and Carney are stan...