US-Canada trade war deepens as Trump revives Depression-era trade tool – what’s at stake for consumers and the midterms

U.S. and Canadian flags wave in the wind next to Blue Water Bridge, which connects Port Huron, Mich., and Point Edward, Ontario. AP Photo/Paul Sancya

The United States and Canada, historically close allies, are moving further into a full-blown trade war with no end in sight.

On Aug. 25, 2026, Canada imposed tariffs of up to 50% on hundreds of U.S. goods after the U.S. placed similar, long-threatened levies on Canadian products. It followed the collapse of trade talks that had been inching towards a deal.