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Oct 1, 2026
🇨🇦50%
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TRADE WAR
Oct 1, 2026
🇺🇸50%
LIVE TRADE WAR TRACKER
Canada–U.S. Tariff & Trade Monitor•Updated OCT 7 2026
The Trade War

CANADA–US TRADE WAR

Canada ↔ United States North American Tariffs Index — 2025–2026

$716B
Annual Bilateral Trade
$27.6B
Under Active Tariffs
50%
Peak Tariff Rate
CA Counter-tariffs EffectiveSEP 8 2026
US Tariff Coverage$74.0B
CA Retaliation Coverage$27.6B
Trade War Status🔴 ACTIVE
⏳ Time Machine

REWIND THE TRADE WAR

Drag the slider, click the arrow buttons, or click any card to travel through time. The map, rates, sectors, and prices update across the site.

NOW · October 1, 2026
🇺🇸 US→CA
50%
Status
TRADE WAR
CA→US 🇨🇦
50%
Jan 2025October 1, 2026Oct 2026
🇺🇸
Thursday, October 1, 2026

Trade talks stall; auto tariffs due to double Jan. 1

After a G20 trade ministers' meeting, U.S. Trade Representative Greer says a handful of issues are "quite difficult to resolve" and the U.S. will not drop existing or proposed tariffs. Canada says it will negotiate in good faith. The announced doubling of U.S. auto and auto-parts tariffs to 50% is set for January 1, 2027.

Site Metric

TRADE WAR INDEX

A branded composite for this site — not an official economic indicator. Built from coverage, rates, affected value, retaliation, duration, and sector breadth.

Current reading
72/100
Escalating
0 Peace50 Tension100 War
72
Tariff coverage
45
~$74B of Canadian exports to the U.S. plus Canada's $27.6B counter-tariff package, versus ~$716B of two-way trade. Most goods are still tariff-free
Average tariff rate
78
Peak rates at 50% on steel, aluminum and listed goods (plus outright import bans on some); ~45% on lumber; 25% on autos
Value of affected trade
75
Canada's Sep 8, 2026 package alone covers $27.6B of U.S. imports
Retaliatory measures
85
Multiple rounds: Mar 2025 consumer goods, Aug 2026 metals + $27.6B package, Sep 2026 broad counter-tariffs, a Sept 29 U.S. import ban on listed Canadian goods, plus a Jan 2027 US auto-tariff doubling already announced
Duration
75
Active since Mar 2025; ~19 months into the dispute
Sectors affected
80
Autos, metals, forestry, machinery, electronics, dairy, alcohol, furniture, apparel. Energy, mining and most agriculture are currently tariff-free

Site-branded composite index — not an official economic indicator. Recalculated from static inputs for visualization.

Interactive Map

THE TARIFF WAR MAP

Animated trade flows between Canada and the U.S. Line thickness scales with trade value. Click a product icon on the map (or a chip below) for tariff details.

🇨🇦 → 🇺🇸
🇺🇸 → 🇨🇦
XX%= tariff rate
100%

Scroll to zoom · drag to pan when zoomed in

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Your Personal Dashboard

MAKE IT YOURS — THEN SHARE IT

This isn't a generic news brief. Build your tariff impact: pick where you live, fill a real shopping basket, and save it in this browser. When the trade war moves, your dashboard updates — and one link lets anyone open the exact same view.

1Choose your region
2Build your basket
3Share your impact
Share your impact

Copy a link with your region + basket baked in. Friends open it and land right here — no account needed. Saved locally for when you come back.

○ Region not set·○ Basket empty
Step 1 · Home region

📍 WHERE DO YOU LIVE?

Your province or state shapes which sectors hit hardest. Saved in this browser and included when you share.

🇨🇦 Canada
🇺🇸 United States

Select a region above to see its most exposed sectors.

Step 2 · Shopping basket

🛒 YOUR SHOPPING BASKET

Add the goods you actually buy. Quantities and prices stay on this device and travel with your share link.

🚗
New Car
25% tariff · 85% pass-through
1
$42,000
$50,925
+$8,925
🧊
Refrigerator
25% tariff · 70% pass-through
1
$1,800
$2,115
+$315.00
🪵
Lumber (1,000 bd ft)
25% tariff · 75% pass-through
1
$650.00
$771.88
+$121.88
📱
Smartphone
50% tariff · 55% pass-through
1
$1,299
$1,656
+$357.22
🥛
Skim Milk Powder (1kg)
50% tariff · 55% pass-through
1
$14.00
$17.85
+$3.85
Before Tariffs
$45,763
Trade war impact
+$9,723
+21.2% increase
After Tariffs
$55,486

Note: Estimates use product-specific pass-through rates. Actual prices vary by retailer, supply chain, and competition. This is an educational model.

Step 3 · Share your impact

Done personalizing? Send your impact link so others can see the same numbers for your region and basket.

Sector Analysis

THE SECTOR BATTLEFIELD

Every major industry in the Canada–U.S. trade relationship. Click any sector to see the supply chain and full impact details.

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Follow a Product

WHAT DOES A TARIFF ACTUALLY DO?

Pick a product and watch it travel from Canadian producer to U.S. consumer — and see exactly where the tariff hits.

🧊

Refrigerator

Appliances

Original price$1,800
Tariff (25%)+$450
Who absorbs the tariff?
Importer absorbs 30%($135)
Consumer pays 70%($315)
New consumer price$2,115

25% counter-tariff on U.S.-made refrigeration appliances (HS 8418) under Canada’s September 8, 2026 list

⚠ Important: The tariff is legally paid by the U.S. importer, not the Canadian exporter or the foreign government. The economic burden shifts based on market conditions and contract terms.

Economic Incidence

WHO ACTUALLY PAYS?

Legal incidence (who writes the cheque to customs) is usually the importer. Economic incidence (who ultimately bears the cost) depends on market power and elasticities — and can be shared across the chain.

$100 product + $50 tariff
Who absorbs the cost?
Canadian exporters15% · $8
U.S. importers35% · $18
U.S. consumers50% · $25
Cost waterfall
Original price$100
Tariff (legal payer: importer)+$50
Exporter absorbs−$8 (lower net price)
Importer absorbs$18 margin hit
Consumer absorbs+$25 at retail
Approx. consumer price$125
Drag the sliders to test assumptions. Shares are normalized to 100%. Legal payer ≠ economic bearer — that's the point of this section.
Integration

SUPPLY-CHAIN SPAGHETTI

A car part can cross the border 6–8 times before you drive it home

🇨🇦
Ontario
Engine / components fabricated
🇺🇸
Michigan
Sub-assembly & machining
🇨🇦
Ontario
Additional components added
🇺🇸
Midwest plant
Final vehicle assembly
🇨🇦
Ontario dealer
Import finished vehicle
👤
Consumer
Drives off the lot
Integrated North American auto production means a tariff doesn't hit once — it can stack at multiple crossings.
Supply Reorganization

WHAT CAN CANADA BUY INSTEAD?

Select a U.S. product category and compare alternative suppliers by illustrative price, capacity, distance, and tariff.

Previously sourced heavily from U.S. mills for Canadian construction and autos

SupplierPrice indexCapacityDistanceTariffNote
🇨🇦Canadian
102vs US=100High400 km0%Domestic supply; Hamilton & Sault Ste. Marie
🇲🇽Mexican
98vs US=100Medium3,200 km0%CUSMA-eligible; capacity constraints
🇪🇺European
110vs US=100High6,000 km0%CETA preferential access
🇯🇵Japanese
115vs US=100Medium9,000 km0%CPTPP partner
🇰🇷South Korean
108vs US=100Medium9,500 km0%CKFTA partner
🇨🇳Chinese
88vs US=100Very high10,500 km25%Lower price; dump/AD risk and geopolitics

Price/capacity/distance are illustrative indices for exploration — not live quotes.

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What-If Simulator

WHAT HAPPENS IF TARIFFS GO HIGHER?

⚠ These are simplified model estimates for educational purposes only. Not economic predictions or official forecasts. Charts update live with your tariff mix. Based on trade elasticity research (Romalis 2007, Broda & Weinstein 2006). Based on empirical pass-through rates observed between roughly 10% and 30% tariff levels. Above that, this model tapers off rather than scaling linearly. The retaliation term uses Canada's counter-tariff rate, not the U.S. rate — both sliders drive this model.

25%
0%50%100%
25%
0%50%100%
Trade Volume Change
+$0.0B
From $716B baseline
Consumer Price Impact
+16.3%
Estimated basket price increase
CA Tariff Revenue
$71.0B
Estimated annual government revenue
US Tariff Revenue
$81.2B
Estimated annual government revenue
📉 Trade volume along your tariff mix
Marker: 🇺🇸 25% · 🇨🇦 25% → $716B

Curve scales your current US/CA ratio from 0% → 100%. Move either slider and the whole path updates.

📈 Consumer price impact

Free trade vs your scenario vs full mix

📈 Tariff revenue split

Canada vs U.S. revenue under each scenario

Employment Impact

JOBS ON THE LINE

Interactive Tariff Controls
25%
0% (Free Trade)50%100% (Max)
25%
0%50%100%

💡 Adjusting these sliders live updates the employment estimates below and keeps the What-If Simulator above in sync.

Canada's export-dependent economy means U.S. tariffs hit jobs directly, while Canada's own counter-tariffs offer a smaller offsetting boost to import-competing industries. Both are model estimates — not forecasts — driven by the 🇺🇸 25% US tariff and the 🇨🇦 25% Canadian counter-tariff set in the What-If Simulator above.

⚠ Based on Trevor Tombe's estimate that the August 2026 U.S. tariff round (a ~2.5-point rise in Canada's average effective export tariff) put ~87,200 Canadian jobs at risk. Calibrated for tariff levels roughly in the 10%-30% range; above that, this model tapers off rather than scaling linearly. Both sliders drive this model — the U.S. tariff rate drives export-side job losses, Canada's counter-tariff rate drives import-competing job protection.

CA export jobs lost to US tariffs
-87,500

Model estimate, not an official forecast. Driven by the 🇺🇸 25% US tariff — Canada sends a far larger share of its exports south than the US sends north, so this is usually the dominant term.

CA jobs protected by counter-tariffs
+10,000

Model estimate, not an official forecast. Driven by the 🇨🇦 25% counter-tariff — reflects Canadian producers (steel, aluminum, lumber) facing less U.S. competition.

Net employment effect
-77,500

Model estimate, not an official forecast. Sums export losses and counter-tariff protection (see research below).

📚 What the research says

Simplified linear-with-taper model for the Canadian side, loosely calibrated against economist Trevor Tombe's (University of Calgary) August 2026 input-output analysis of the Section 338 tariffs. Not a forecast — see citedStudies for the real research this is loosely calibrated against.

Factual baseline: workers in sectors facing U.S. tariffs

CA workers in sectors facing U.S. tariffs (All Sectors)
1,168,000

Not a model output — a straight sum of affected-worker estimates across every sector tracked in the Sector Battlefield. Click an industry below to isolate its worker count.

Cascade

THE DOMINO EFFECT

One tariff doesn't stay in customs. Pick a sector and watch the chain reaction from border duty to supply-chain reorganization.

⛏️
Trigger · Steel
🇺🇸 50% tariff on Canadian steel & aluminum
⚡
📉
🏭
💵
⚔️
📦
🏗️
🔎
🔀
Interactive Simulation

YOU ARE THE PRIME MINISTER

Situation Brief — Sep 2026

The U.S. has imposed 50% tariffs on Canadian steel and aluminum. Your cabinet is demanding action. Canadian manufacturers are under severe pressure. The public is watching. What do you do?

Transparency

THE DATA BEHIND EVERYTHING

Where the numbers come from, how the models work, and what this site is — and isn't — claiming. Page viewed October 7, 2026. Dataset snapshot labeled 2026-10-06.

Methodology

  • →Shopping-basket and product-flow prices use product-specific passThroughRate assumptions, not observed scanner data.
  • →What-if charts use simplified linear elasticities for teaching; they are labeled as model estimates, not forecasts.
  • →The Trade War Index is a site-branded composite of weighted factors (coverage, rates, value, retaliation, duration, sectors) — not an official indicator.
  • →Sector tiles show the headline rate on the listed products in each sector, not an average across all trade. Only about 5% of Canadian exports to the U.S. are on the Section 338 lists, and most trade remains tariff-free under CUSMA.
  • →Alternative-supplier tables use illustrative price/capacity/distance indices for UX, not live procurement quotes.
HS codes & granularity

Canada publishes detailed tariff-item lists with 8-digit HS codes, descriptions, and rates. A future product explorer could map those schedules line-by-line; this site currently uses sector aggregates for clarity.

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