How Trump's new trade war with Canada affects everything from building new homes to dog jackets

The US and Canada are once again locked in a trade war, with the Trump administration imposing 50% tariffs on various Canadian goods, including alcohol, plywood, and hockey equipment. Canadian Prime Minister Mark Carney has announced a dollar-for-dollar counter-tariff, further escalating tensions between the two nations.

The specific nature of the tariffs means that different sectors will be affected unevenly. For consumers, this could mean higher prices for Canadian whisky and home renovation supplies, like plywood. Canadian lumber, a key material in homebuilding, is also at risk, potentially driving up construction costs and making new homes less affordable.

The tariffs are likely to hit sectors directly named in the announcement, such as alcohol, plywood, and automotive parts, as well as states like Michigan that rely heavily on cross-border trade. While the tariffs may not significantly impact overall American employment, they could contribute to inflation and higher interest rates, affecting mortgage rates and the housing market.

Canadian jobs could also be at risk, with nearly 90,000 positions potentially affected. The situation highlights the close economic ties between the two countries and the potential consequences of trade disputes. While it remains to be seen whether the tariffs will stick around, the uncertainty alone could strain the already integrated North American supply chain.