The 100% Threat: Canada vs. USA Trade War Escalates
February 20, 2026 · Trade Policy
President Trump has raised the stakes in the North American trade standoff, threatening 100% tariffs on Canadian goods in response to Canada's deepening trade relationship with China. The move follows the House's symbolic vote to revoke existing Canada tariffs—and signals that the White House is willing to double down rather than back off.
What's at risk
Canada is a major supplier of lumber, energy, and agricultural products to the US. A 100% tariff would effectively double the cost of those imports overnight, hitting construction, heating, and food prices. Markets are already pricing in volatility; supply chains are scrambling to model scenarios. For households, the message is clear: prepare for the possibility of sharply higher costs on anything that crosses the northern border.