Trump’s tariffs on roughly $20 billion in goods remain in place as Canadian steel exports fall by half and lumber exports trail 2024 levels

President Donald Trump’s escalating trade fight with Canada is squeezing the Canadian economy, threatening jobs and adding financial strain for families as steep U.S. tariffs on roughly $20 billion in goods remain in place.

The tariffs have heavily affected Canada’s steel, aluminum, lumber and automobile producers. Steel exports have fallen by roughly half, while lumber exports were about 20% below 2024 levels earlier this year, according to the Bank of Canada. Government data show consumer prices were 3% higher in August than a year earlier.

The dispute also involves complaints about access to Canada’s dairy market. David Clement, North American affairs manager at the Consumer Choice Center, told Fox News Digital those complaints were “completely valid,” citing Canada’s high tariffs on imported chicken, turkey, eggs, cheese and milk. Scott Lincicome, vice president of general economics at the Cato Institute, said more than 99% of U.S.-Canada trade was duty-free before 2025 and negotiators had historically tolerated sensitive disputes to preserve the wider relationship. He said the Trump administration has so far refused to make a deal.

Lincicome described the tariffs and rising energy prices from the Iran war as a “double whammy.” Higher diesel prices, he said, raise the cost of transporting products to consumers. Clement cautioned against letting the dispute undermine the Canada-U.S. partnership, describing it as one of the greatest trading relationships the world has ever known.