What to know about escalating US-Canada trade war

Canada retaliated against U.S. President Donald Trump with tariffs on about $20 billion in American goods on Tuesday, responding to another round of tariffs affecting Canada. The measures cover hundreds of U.S. products—including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment—with rates of 15%, 25%, or 50%. Canada says the tariffs are dollar-for-dollar and rate-for-rate matched, taking effect at 12:01 a.m. Tuesday under an “order in council.” The article notes RBC Economics expects limited overall impact on U.S. growth but potential pain for specific businesses. It also recounts prior actions, including provincial restrictions on U.S. alcohol, and renewed U.S. threats involving Bombardier and possible outright bans on some Canadian goods.