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The escalating trade war between the United States and Canada is expected to fuel higher costs for both shippers and consumers while disrupting the North American supply chain, according to several industry trade groups.
After nearly a month of negotiations, both countries failed to reach a deal last week to avert 50% tariffs on $20 billion of Canada goods U.S. President Donald Trump announced in July.
In response, Canada has installed retaliatory tariffs of up to 50% on a range of U.S. imports, including steel, dairy products, appliances and agricultural equipment. Even before Canada imposed its counter tariffs, Trump threatened additional duties on cars, trucks, auto parts and steel from the U.S.’ northern neighbor.
The trade dispute will negatively impact trade flows in North America, particularly for sourcing in agriculture, forest products, wool apparel, tin mill steel, consumer goods and food, according to trade groups.
