Washington will introduce new restrictions on Canadian agricultural, energy, and lumber goods starting September 29 to pressure Ottawa over trade terms. These measures serve as a response to Canada's own retaliatory duties and follow a US decision to withdraw from the previous North American agreement. The White House is utilizing the additional tariffs and import blocks as leverage to force a more compliant stance from the Canadian government.

This escalation follows a decline in American vehicle market share in Canada to 28.4% in the first half of 2026, compared to 35.4% in the prior year. Since January 2025, the US has lost roughly 75,000 manufacturing jobs, while GM and Stellantis have reported losses in the billions. The dispute is particularly acute in five midterm battleground states, including Michigan and Ohio, which together conduct $188B in trade with Canada.