US-Canada trade war deepens as Trump revives Depression-era trade tool – what’s at stake for consumers and the midterms

Trump’s use of a trade tool created during the Great Depression helped trigger a trade war between the two border countries, with few signs of de-escalation in sight.

By: Kent Jones, Babson College, The Conversation

Outlets: The Conversation

Published: August 27, 2026

Words: 1,418

Last Updated: 1 month, 3 weeks ago

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By Kent Jones, Babson College

The United States and Canada, historically close allies, are moving further into a full-blown trade war with no end in sight.

On Aug. 25, 2026, Canada imposed tariffs of up to 50% on hundreds of U.S. goods after the U.S. placed similar, long-threatened levies on Canadian products. It followed the collapse of trade talks that had been inching towards a deal.

The next day, U.S. President Donald Trump

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