“How Will the New Canadian Tariffs Affect the U.S. Economy?

Levies to take aim at big industries, like aluminum and steel, in addition to smaller ones located in states with closely watched midterm elections

Canada on Tuesday announced tariffs on roughly $20 billion of U.S. goods, days after the U.S. escalated trade tension by enacting new levies on $20 billion of Canadian goods. The acrimony follows the collapse of trade talks between the two nations, which have a nearly $900 billion-a-year trading relationship. Canada’s new tariffs are set to take effect Sept. 8.

Trade experts and economists said Canada’s levies would exert pressure on Republican candidates running in key races in the U.S. midterm elections. Here’s what they say about how the tariffs could affect the U.S. economy more broadly:

What is Canada tariffing?

Canada said it plans to impose tariffs of 15% to 50% on about $20 billion of U.S. imports. That equals roughly 7% of Canada’s imports from the U.S. The levies are a “dollar for dollar” response to the U.S. decision to impose 50% tariffs on $20 billion of Canadian goods, effective Aug. 22, Canada said.