How Canada could hit back to hurt the US economy - and Trump

How Canada could hit back to hurt the US economy - and Trump The timing and the willingness of the Canadian government could serve as leverage in negotiations. Canadians know they will feel economic strain; fiscal analysts estimated that the recent 50 % tariffs on roughly $20 billion of Canadian imports could shave between 0.3 % and 0.6 % off GDP in the short term. Still, a majority of Canadians broadly support Ottawa’s push for a tough stance against the Trump administration, and various provincial leaders have presented a united front. An Angus Reid poll showed that about 76 % of Canadians back the government’s decision to step back from trade talks, even as they worry about their own job security. With US midterm elections fast approaching, the economy remains a top concern for voters and the Republican hold on Congress looks fragile. Two of the most closely watched Senate contests are in Michigan and Maine—states that border Canada and rely heavily on cross‑border exports. According to the Yale Budget Lab, under current law Trump’s blanket tariffs would cost the average American household roughly $1,100 per year. Any further increase in the price of goods, combined with the broader fallout from the trade dispute, could deepen public dissatisfaction with the economy. On Monday, Mark Carney warned that US workers would be hurt by Trump’s latest threat to raise the tariff on Canadian autos and parts to 50 % effective 1 January. "What is the connection sent retired to the workers successful Michigan, Ohio, Kentucky, Alabama? These workers beryllium perfectly connected Canada, their largest consumer," he said, adding that Canada buys more American cars than the EU and different countries. Also on Monday, British Columbia Premier David Eby told CNN that US consumers would feel the impact of the tariffs on a range of products. "If you're gathering a caller home, connected plywood, if you're replacing your floor, connected veneers,