Canada would bear the brunt of Trump's tariffs in terms of economic contraction, says The Budget Lab of Yale.

Trade tensions between the US and Canada escalate as President Trump threatens a 35% tariff on Canadian goods. This move jeopardizes the USMCA and could have significant economic repercussions for both nations.

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.