Depression-Era Tariffs Reignite US-Canada Trade Tensions Ahead of the Midterms

The US and Canada, long-time allies, have escalated their trade dispute after talks collapsed and Trump invoked Section 338 of Smoot-Hawley to impose 50% tariffs on about $20 billion in Canadian exports, provoking a retaliatory Canadian tariff plan on US goods. The move threatens higher prices for consumers, risks broader cost pressures for border-state industries like autos and seafood, and could sway swing-state voters in the upcoming midterms. Economists warn that reviving Depression-era protectionism undermines decades of global trade liberalization, with the ultimate outcome likely shaped by political changes after the elections.