US-Canada tariff tug-of-war rattles cars, homes and everyday prices

A renewed US-Canada tariff battle expands to cars, wood, household goods and alcohol, with Canada replying with duties on US metals and various items. A potential 50% US tariff on Canadian autos could lift prices and squeeze supply chains, while higher lumber and wood-product costs threaten home-building expenses. Some goods may shift to domestic suppliers, tempering price spikes, and alcohol restrictions have reduced US exports to Canada. Economists warn the broader tariff climate adds uncertainty, risks investment, and could complicate the USMCA framework, though the direct household cost from this episode is expected to be modest in isolation (a few dollars per household, rising when considering the wider tariff stance).