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US-Canada Trade Fight Deepens As Tariffs Hit Key Consumer Goods

Businesses now face the choice of absorbing higher costs, finding alternative suppliers or limiting imports

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The US and Canada are heading toward a deeper trade dispute after negotiations failed Friday, according to CNN. President Donald Trump subsequently imposed 50% tariffs on about $20 billion in Canadian goods. Canada is preparing matching tariffs beginning September 8, Prime Minister Mark Carney said.

Businesses now face the choice of absorbing higher costs, finding alternative suppliers or limiting imports. However, replacing Canadian suppliers may prove difficult or more expensive because of existing cost and logistical advantages.

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CNN reported that higher expenses could eventually reach American consumers, particularly as energy and transportation costs remain elevated.

Three categories are especially exposed. Paper products, including parchment paper, disposable paper goods, cardboard materials and some plywood, are covered by the tariffs. Alcoholic beverages, including beer, wine and spirits, are also affected.

Canadian dairy products, including milk, cheese, butter and whey, are covered as well. US imports of these three categories totaled billions of dollars last year, according to trade data cited by CNN.

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Why Did Trump Pause 50% Tariffs On Canadian Goods
Trump announced Tuesday that the tariffs, initially scheduled to begin Wednesday, would instead be delayed until August 21

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