Dave Chan/AFP via Getty Images; Jim Watson/AFP via Getty Images
The dog days of summer don't mean the US and Canada are easing up their trade war.After talks between the sides fell apart, more tariffs were enacted or threatened over the weekend and on Monday. BI's Kelsey Vlamis and Truman Dickerson have a list of some of the more popular products that have recently been hit with 50% tariffs. (Apologies, hockey players.)The latest tariffs affect about 5% of all Canadian exports to the US, totaling about $20 billion. That's not enough to immediately plunge the US economy into chaos, but it will deeply impact the industries the new levies target.Meanwhile, Canadians don't seem to mind the rivalry heating up again. BI's Henry Chandonnet spoke to Canadians willing to double down on their American boycott.This also goes beyond your next Crown Royal bottle being a bit more expensive. BI's Juliana Kaplan, Madison Hoff, and Allie Kelly have more on what the reignited trade war means for both economies.Ultimately, if businesses pass those costs on to consumers via higher prices — and why should we expect anything else? — that's another source of inflationary pressure. That further complicates the Fed's decision on rate cuts.The biggest risk from this trade war isn't what's already arrived but what could come next.After Canadian Prime Minister Mark Carney announced retaliatory tariffs coming next month, Trump responded with an even bigger blow.The president threatened to double the headline tariff on Canadian automobiles and parts to 50% starting in January 2027.
