Trump’s 50% tariffs on Canadian goods take effect, sparking retaliation

President Donald Trump's new 50% tariffs on roughly $20 billion of Canadian goods took effect Saturday after talks collapsed, threatening higher U.S. prices on items from hockey sticks to honey. Canadian Prime Minister Mark Carney vowed "dollar for dollar" retaliatory duties starting September 8. The immediate cost falls on American importers, who may absorb increases or pass them to consumers, with a January study finding "nearly all" prior tariffs were paid by U.S. buyers. A Pew survey showed 60% of Americans oppose the hikes. Affected goods include cement, plywood, perfume, sweaters, dog leashes, wine, and cameras, some previously shielded under the USMCA trade pact. Trump separately announced Monday that tariffs on Canadian cars, trucks, auto parts, and steel will rise to 50% on January 1, 2027. Canada sent 72% of its exports to the U.S. last year, underscoring the deep economic ties now strained by the dispute.