US Treasury Secretary Bessent warns Canada trade war would raise US inflation by 0.02%

Treasury Secretary Scott Bessent wants you to know he’s not worried about Canada. Speaking at a G20 finance ministers gathering in North Carolina, Bessent put a number on just how much the latest round of tariffs against America’s northern neighbor would hurt US consumers: 0.02%. The tariff math The US slapped 50% tariffs on roughly $20 billion worth of Canadian imports starting August 22, 2026. The affected goods span dairy, wine, and cement, products that weren’t previously shielded under USMCA regulations. Canada, predictably, didn’t take it quietly. Ottawa announced retaliatory tariffs set to kick in on September 8, 2026, targeting US steel, dairy, and electronics on a dollar-for-dollar basis. Bessent’s response to the retaliation threat was blunt. He noted that the Canadian economy is “13 times smaller” than the US economy. The $20 billion in targeted goods represents a fraction of the nearly $600 billion in annual bilateral trade between the two countries. A familiar playbook The US still maintains duties on Canadian steel, aluminum, lumber, and automobiles. The latest round of 50% levies simply adds new product categories to an already complicated trade relationship. Bessent...