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How the US-Canada trade war is being felt on both sides of the border

The US and Canada appear no closer to resolving their ongoing trade dispute. Tensions have been simmering between the two neighbours since President Donald Trump returned to the White House just oveโ€ฆ

How the US-Canada trade war is being felt on both sides of the border
BBC Business โ€” 30 August 2026
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The US and Canada appear no closer to resolving their ongoing trade dispute.

Tensions have been simmering between the two neighbours since President Donald Trump returned to the White House just over 18 months ago, and unleashed a wide-ranging global programme of tariffs.

Canada was one of the first countries the Trump administration hit with levies, and is one of two countries to respond with its own reciprocal measures.

Currently, the US has hit Canada's key sectors of steel, aluminium, lumber and automobiles with tariffs, and last week imposed an additional 50% levy on about C$28bn ($20bn; ร‚ยฃ15bn) of Canadian goods.

Canada has hit back with its own counter-tariffs on American goods, announcing on Tuesday what it calls a "dollar-for-dollar" and "strategic" retaliation designed to match the US tariffs.

With no resolution in sight, how has this enduring trade war affected Canada and the US, and what could come next?

The tariffs and counter-tariffs have hit some states and provinces harder than others.

In Canada, some provinces have been more exposed to US sectoral tariffs on steel, steel derivatives, aluminium, and autos and vehicle parts that don't comply with the current North American trade deal, known as the USMCA.

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