San José, CA – On Tuesday, September 8, President Trump announced an escalation of his trade war with Canada with 50% tariffs, or taxes on imports, from Canada, for cheese and dairy products, furniture, golf carts, hides and leather, motorboats, paper, steel, and aluminum. The tariffs are to start Tuesday, September 15. In addition, Trump is banning Canadian motorcycles, beer, wine and liquor, as well as other products, to start in three weeks, on September 29.

This was in response to Canada’s retaliation to Trump’s original tariffs on Monday, September 7, of 15% to 50% on $20 billion of U.S. products, designed to match Trump’s initial tariffs on $20 billion of Canadian goods. In addition, Trump announced that U.S. tariffs on Canadian-made cars and car parts would go to 50% come January 1, 2027.

While the tariffs only cover a small share of Canada-United States trade, about 5%, this pattern of escalation could threaten trade with the United States’ second-largest trading partner after Mexico. But Trump’s verbal attacks and insults, such as that Canada should be the 51st state of the United States, and renaming Lake Ontario to “Lake America”, has meant that almost three quarters of Canadians back their government’s resistance to U.S. demands. In contrast, only about 25% of Americans think that Trump should stick to being tough on Canada.

These new tariffs, and the price increases that they cause, are part of the growing unhappiness of Americans with their economic situation. The University of Michigan’s preliminary consumer sentiment index for early September, released on September 11, fell to 47.8 from 51.7 in August. This was lower than any economists had predicted.

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