Canada's expected tariff retaliation today applies to only a slice of the country's total imports from the U.S., so immediate harm should be limited, but U.S. escalation could threaten a much wider economic base including the auto industry.
(thread originally from two weeks ago)
The collapse of trade talks with Canada puts the U.S. on unsure footing with its second-largest trading partner. The over 10% of all U.S. imports originating from our northern neighbor have faced a lower average tariff rate compared to other countries, but that could soon change.