The US-Canada trade war could stoke inflation, piling pressure on the Trump administration ahead of November’s key midterm elections. Canada vowed to match 50% US tariffs after talks broke down over the weekend. Though the US levies only apply to a subset of Canadian goods, the move could add to price rises sparked by the war in Iran.
The increased uncertainty driven by the Trump administration’s trade policies has helped drive up the cost of goods domestically, an analyst at the libertarian Cato Institute argued. The moves come as US President Donald Trump’s approval on the economy plummets: A recent poll showed more than half of respondents said they felt “worse off” financially since the start of his second term.
