Kashkari Warns $880 Billion U.S.-Canada Tariff Fight Could Prolong Inflation
Updated
Updated · CBS New York · Aug 23
Kashkari Warns $880 Billion U.S.-Canada Tariff Fight Could Prolong Inflation
2 articles · Updated · CBS New York · Aug 23
Summary
Neel Kashkari said the U.S.-Canada tariff standoff could keep U.S. inflation elevated longer if the trade back-and-forth continues instead of settling into a stable new normal.
Saturday's breakdown in negotiations triggered new U.S. tariffs on Canadian products, and U.S. Trade Representative Jamieson Greer said no further talks are currently planned.
Canada is preparing retaliatory tariffs for Sept. 8, with Prime Minister Mark Carney set to unveil details this week on measures targeting steel, dairy, appliances, farm equipment, pulp, paper and electronics.
$880 billion in two-way goods and services trade in 2025 underscores the stakes: Canada was the second-largest U.S. trading partner after Mexico.
Kashkari tied the dispute to a broader run of supply shocks that have driven five years of elevated inflation, alongside the Iran war's impact on energy costs.
With a massive trade framework at risk, could the sudden U.S.-Canada tariff war trigger an unexpected surge in your daily living costs?
Despite warnings of prolonged inflation, why does recent economic research suggest the fallout from these retaliatory tariffs might already be stabilizing?