Trump Targets Canada with 50% Tariffs on Select Imports, Exemptions Limit Broad Price Hit

Trump announced 50% tariffs on a broad set of Canadian imports—primarily autos, alcohol and dairy—with exemptions for oil, natural gas, minerals and other products; because of these exemptions the hit is limited to about 5% of US-Canada trade, though most affected goods could see price increases over the next few months as sellers pass costs to consumers. Economists warn tariffs are inflationary, and a Dallas Fed study attributed about a quarter of recent inflation to tariffs, while Canada says it’s open to negotiations and legal challenges to the measures are possible.