The U.S. government’s trade dispute with Canada continues. During his second term, President Donald Trump has repeatedly threatened the country’s northern neighbor with steep tariffs.

The president has also suggested that Canada could become the “51st state” and proposed renaming Lake Ontario as “Lake America,” a measure that took effect immediately on August 27.

“The United States is the greatest protector of the Great Lakes, including the body of water currently known as Lake Ontario. Without the security and investment provided by the United States, this freshwater system would not be open for shipping, recreation, and responsible use to the same extent as it is today,” Trump said in an executive order.

Recently, President Trump followed through on one of his threats and imposed U.S. tariffs of up to 50% on imports of numerous Canadian products. In response to the threat of steep tariffs, the Canadian government announced retaliatory measures, including tariffs ranging from 25% to 50% that are set to take effect on September 8.

Products that could become more expensive because of the U.S.-Canada trade dispute

According to a report by The Guardian, paper products are among the sectors that could be hit hardest, as Canada has threatened to impose tariffs ranging from 25% to 50% on supplies of “toilet paper or facial tissues.” Retailers such as Costco source a significant portion of their paper products from Canada.

Trump also imposed a 50% tariff on nearly all Canadian dairy products. In response, Canada could impose a 50% tariff on U.S. dairy products, along with a 25% tariff on American cheese and a 25% tariff on U.S. fish and seafood.

The U.S. government has also imposed a 25% tariff on Canadian automobiles and auto parts. That rate could increase to 50% if an agreement is not reached before January 1, 2027.

According to an analysis by economists cited by CBS News, the tariffs could have a particularly significant impact on states in the Midwest and Northeast, including Wisconsin, Vermont, Michigan, Indiana, and North Dakota.

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