"Trump is going to be hitting American consumers with a new round of tax hikes just over two months before the election," said one economist.

The two countries failed to reach an agreement before Saturday’s deadline for the Section 338 levies, with Canada vowing to “match those tariffs dollar for dollar.”

Canadian Prime Minister Mark Carney vows to retaliate, says his country recognized that 'America has changed' and that the two countries would 'not return to our old relationship'