U.S.-Canada Trade War Raises Small-Business Costs

A U.S.-Canada trade war is raising costs and disrupting cross-border business, with Canada imposing reciprocal tariffs on about $20 billion in U.S. goods after President Donald Trump introduced comparable duties on Canadian products and threatened additional bans. Although the tariffs cover roughly 5.5% of bilateral goods trade, small businesses report outsized effects, including canceled orders, higher supply-chain and energy costs, and consumer boycotts driven by political tensions. The dispute could become broader if the European Union grants Canada an unprecedented associate-membership arrangement covering trade, defense, energy, minerals, research and other sectors. Trump called the proposed EU-Canada partnership a hostile act and threatened serious tariffs or an end to trade with Europe, while experts warned that escalation could strain U.S. manufacturing, raise consumer prices and complicate longstanding defense and economic ties with Canada.