How does the US-Canada Trade War impact Law Firms?

Trade Wars are back!

The US will tax Canadian cars, trucks and parts at 50% from 1 January. Canada hit back with counter-tariffs of up to 50% on $20bn of US imports from 8 September.

Today we cover how this impacts Law Firms and their clients.

The story so far

• Friday: trade talks collapse shortly before a midnight deadline. Canada suspends negotiations, saying the US demanded limits on its ability to strike trade deals elsewhere.
• Saturday: the US imposes an additional tariff of up to 50% on $20bn of Canadian exports.
• Monday: the US says cars, trucks and parts will face 50% from 1 January, with steel levies fixed at the same rate. Ford and Stellantis shares fall about 4%, GM more than 2%.
• Tuesday: Canada publishes a 99-page list of hundreds of US goods facing counter-tariffs of 15, 25 or 50% from 8 September, covering $20bn of imports including steel, dairy products and agricultural equipment, alongside a $5.5bn support package for affected businesses and workers.

Why does this matter?

The measures cover about 5% of Canada's exports to the US, and more than 80% still crosses duty free.

The 50% rate on cars starts in January, and Canada's counter-tariffs start on 8 September. Even so, carmakers' shares fell the day of the announcement.

• 🚗 Why are car makers in trouble? The problem is the uncertainty this creates for businesses. A car plant is money you cannot get back. Once they know rules might change in four months, many carmakers will stop building, stop hiring and stop quoting long prices until they know what the rules are. That creates a big impact on the economy even if the tariffs have not kicked in yet.

How does this impact law firms?