America is in a trade war with Canada
President Donald Trump’s tariffs against America’s northern neighbor, Canada, went into effect on March 4. Imports from The Great White North are being slapped with whopping 25% levies. It’s no small issue — the U.S. imported $412.7 billion worth of goods in 2024.
In retaliation, Canada is imposing its own tariffs on American goods, set to be rolled out over the coming month. Prime Minister Justin Trudeau said his country’s own tariffs would impact $155 billion on U.S. imports.
Yale University predicts that the tariffs against Canada, China, and Mexico will result in a net loss of $1,600 to $2,000 per household.
Here are 7 ways that could impact your bottom line.
Your stocks could take a hit
The Dow Jones tumbled after Trump and Trudeau’s announcements — losing around 500 points.
While there’s always a chance for it to bounce back, your stock portfolio might be a bit bruised.
And there are other, less ethereal commodities that can be directly hurt.
It’s gonna cost more to build a house (or anything)
The United States imports a ton (no pun intended) of lumber from Canada — we’re talking north of $28 billion worth. That equates to roughly 30% of the timber we use.
If you use some quick napkin math, you’re looking at a $7 billion increase overall, which will put a lot of stress on homebuilders … which will trickle down to homebuyers.
Cars might get pricier
Supply chains are large, complicated beasts. Parts of your Ford or Chevy — generally considered to be American companies — might originate in Canada, or China, or Mexico.
The head of Ford, Jim Farley, told The New York Times in February that “Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we’ve never seen.”
Canada exported close to $38 billion in cars in 2023.
Steel will be more expensive
Steel is, of course, integral to America’s infrastructure. In fact, we imported 26.3 million metric tons in 2019.
Our biggest importer? (You’ve probably guessed it by now.) Canada.
Canada accounts for more than a third of our steel imports. You slap a 25% tariff on that and you’re gonna have a rough time in construction.
More possible pain at the pump
Gas prices hit their lowest mark in the 90s, with gas prices hovering around $1.That all seems pleasantly absurd of course if you’re a driver, now that we’ve hit the presumption that (per gallon) is gonna top $3.
Here’s the bummer for anyone paying attention: We import a lot of gas from Canada.
The numbers don’t lie, and it’s going to hurt both companies and people.
Do you know where your eggs come from?
It’s not quite a chicken-and-the-egg problem, but it might surprise you that — as egg prices soar in the U.S, and we’re trying to figure out what the heck is going on with bird flu. — egg prices are hitting record highs.
That doesn’t just impact your breakfast, it impacts your wallet.
Bottom line
The full impacts of Trump’s tariffs remain unknown.
Trump himself has waffled a bit on what he intends to do — sometimes pausing the tariffs he wants to implement, but promising more down the road.
What we do know is that they will have a significant impact on the economy.
