Trump has launched a full trade war with Canada, and it is bad news for American consumers and businesses already dealing with war-driven inflation.

• Trump slapped steep tariffs on Canadian goods and threatened to push car, truck, auto parts, and steel tariffs to 50% by 2027.
• Canada is hitting back dollar for dollar, with Mark Carney saying the country will not back down and is cutting its dependence on the US.
• Canada supplies most of America's imported oil and natural gas, over half its aluminum, and Ontario is threatening to cut off electricity and critical minerals.
• Trump publicly said the US needs Canadian aluminum badly, one day after claiming America needs nothing from Canada.
• This lands on top of the Iran war, a closed Strait of Hormuz, high gas prices, and warnings of a global food crisis next year.

Outlook: Prices for cars, food, and energy look set to rise further unless Trump backs off the tariffs, which many expect he eventually will.