{"id":221013,"date":"2026-08-18T01:20:11","date_gmt":"2026-08-18T01:20:11","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/trumps-promised-tariffs-on-canada-threaten-higher-inflation-on-both-sides-of-the-border-nbc-news\/"},"modified":"2026-08-18T01:20:11","modified_gmt":"2026-08-18T01:20:11","slug":"trumps-promised-tariffs-on-canada-threaten-higher-inflation-on-both-sides-of-the-border-nbc-news","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/trumps-promised-tariffs-on-canada-threaten-higher-inflation-on-both-sides-of-the-border-nbc-news\/","title":{"rendered":"Trump\u2019s promised tariffs on Canada threaten higher inflation on both sides of the border. – NBC News"},"content":{"rendered":"

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The Canadian government is racing to negotiate a deal with the Trump administration in order to avoid a fresh wave of U.S. tariffs set to hit many of its exports to the United States starting on Wednesday.
However, after weeks of meetings, the prospects for a deal remained uncertain Monday, and Canadian broadcaster CBC reported<\/a> that the two countries were at an impasse.
Speaking to reporters, Prime Minister Mark Carney described the talks as \u201cvery delicate and intense.\u201d He also said he planned to speak with Trump before the deadline.
The new tariffs, if implemented, would hit about $20 billion worth of Canadian products imported to the U.S., including hockey sticks, some clothing, wines, some dairy products and certain building materials such as cement and plywood. Energy products, potash, fish and critical minerals are excluded from the duties.
In 2025, Canada ranked as the third-largest source of imports for the U.S., according to Census Bureau data, with more than $380 billion worth of goods crossing the border into the U.S. last year.
The White House has said<\/a> the tariffs are in response to Canada\u2019s \u201cdiscriminatory treatment of American products\u201d and that it\u2019s \u201cleveling the playing field for crucial American exports \u2014 cars, alcohol, and dairy.\u201d
It plans to implement the duties under Section 338 of the Tariff Act of 1930<\/a>, a 96-year-old law that authorizes the president to hit any foreign country that discriminates against U.S. commerce with tariffs of up to 50%.
No president has ever invoked Section 338 before, and legal challenges are all but certain to be filed against the tariffs.
Nonetheless, importers could pass the new tariffs down to consumers \u2014 putting more pressure on Americans who are already navigating higher costs. Consumer prices have jumped 3.4% <\/a>over the last year, up from 2.4% right before the Iran war.
Tariffs currently cost the average American household around $1,100 annually, Yale\u2019s Budget Lab estimates.<\/a>
For more than a year, the U.S. and Canada have engaged in a trade tit for tat. The U.S. put in place global tariffs on imports including steel, aluminum and autos last year \u2014 as well as IEEPA tariffs on Canada over alleged fentanyl trafficking at the northern border.
Canada denied that its border was a significant source of fentanyl smuggling into the U.S. and retaliated with tariffs of its own on American products. Now, U.S. officials say these new tariffs are payback for Canada\u2019s retaliation.
\u201cThe policy basis for [Wednesday\u2019s] duties are related to measures that Canada took against the United States,\u201d U.S. Trade Representative Jamieson Greer said <\/a>last week. \u201cI\u2019ve got two countries in the world that have retaliated against the United States for trade measures: the People\u2019s Republic of China and Canada,\u201d said Greer. \u201cThat\u2019s not the kind of company you really want to be running in.\u201d
Carney, in a statement<\/a>, called the threatened duties \u201cthe latest in a series of unilateral U.S. trade actions\u201d that have been in \u201cdirect violation\u201d of the U.S.-Mexico-Canada Agreement \u2014 a trade deal Trump signed during his first term.
As Wednesday\u2019s deadline nears, top Canadian officials have gathered in Washington to try to hammer out a deal with their U.S. counterparts.
The negotiations are so urgent for Canada\u2019s government that Dominic LeBlanc, Carney\u2019s minister responsible for U.S.-Canada trade relations, who has been in Washington for almost a week, met Sunday for an hour with Greer.
That followed \u201cseveral days of detailed technical discussions\u201d between Canada\u2019s chief trade negotiator to the U.S. and U.S. Deputy Trade Representative Jeff Goettman, a spokesperson for LeBlanc told NBC News.
On Monday afternoon, LeBlanc and Charette will again meet with Greer. Commerce Secretary Howard Lutnick will also join the meeting, a spokesperson for LeBlanc said.
Canadian officials declined to provide further details on the state of the talks to NBC News. The U.S. Trade Representative\u2019s office did not respond to requests for comment Monday.
Economists widely believe that trade barriers typically drive up prices for the importer and exporter.
Higher prices are not just a problem for the U.S. Inflation is also back on the rise in Canada. On Monday, Statistics Canada reported inflation rose 3.0%, up 0.5% from a month earlier.
\u201cTariffs were once considered a one-off but they are hitting sequentially,\u201d KPMG chief economist Diane Swonk wrote Friday.<\/a> \u201cAll of this further complicates inflation over next year, even if energy prices are able [to] ebb and flow toward a lower level.\u201d
\u201cWe will see more cost pressures,\u201d she added.
In mid-July, the Trump administration rolled out a separate tranche of tariffs on 60 economies<\/a> after dozens of trade investigations into forced labor issues.
\u201cRegardless of whether the tariffs go into effect, the President is signaling that he believes he has a new tariff authority that can be used for negotiating leverage and that he intends to use it,\u201d wrote Evercore analysts in a July note.
\u201cThis is the most aggressive posture we have seen from the Administration since the Supreme Court IEEPA decision and could be a harbinger of things to come,\u201d they added.
Steve Kopack is a senior reporter at NBC News covering business and the economy.
Christine Romans is the chief business correspondent at NBC News.
Kayla Steinberg is a producer at NBC News covering business and the economy.
© 2026 NBCUniversal Media, LLC<\/p>\n

source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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