Canada and the United States are facing a potential trade war marked by tit-for-tat tariffs. Both nations are expected to suffer significant economic consequences from these restrictive policies. Specifically, the implementation of steeper tariffs will lead to increased operational costs for businesses. These rising expenses are likely to be passed down to the general public. Consequently, consumer prices for various goods and services will rise. Such an economic environment threatens the stability of bilateral trade relations. Ultimately, the trade conflict risks slowing growth for both North American economies.