Trump's tariff chief says it's 'unhinged' for Canada to call trade dispute a war

Whatever language the two governments use, the dispute is starting to show up in two places that matter to Canadian households: the price of everyday goods and how soon interest rates might come down.

What did Trump’s trade chief actually say?

Greer’s comments came in an interview with the Financial Times, in which he argued that the tariffs the U.S. imposed in August apply to just 5% of Canada’s exports, and that framing the response as an economic attack was overblown. He isn’t alone in rejecting the framing: U.S. Treasury Secretary Scott Bessent has also dismissed the idea that the two countries are in a trade war.

Why Canadians are already feeling it in their wallets

Canada’s retaliatory tariffs, which took effect September 8, apply to roughly $27.6 billion of American goods, including furniture, household appliances, beauty products, clothing and agricultural equipment, meaning everyday cross-border purchases and the businesses that rely on U.S. suppliers just got more expensive.

The U.S. answered within hours, moving to ban imports of most Canadian alcohol, some dairy products and large motorcycles starting September 29, along with fresh 50% tariffs on goods including mattresses and motorboats. Economists say the direct hit to the overall economy will be small, since the banned categories account for roughly $700 million of exports, according to RBC economist Nathan Janzen, but the pain will concentrate in specific industries and the workers who depend on them, from alcohol producers to motorcycle makers.

As rising consumer costs and sector-specific strain ripple through the broader economy, they are also complicating the central bank's path forward on borrowing costs.

What this means for mortgages and interest rates

The Bank of Canada held its key interest rate at 2.25% on September 2, warning that new U.S. tariffs and Canada’s counter-measures have made the outlook for growth and inflation more uncertain, and that upside risks to inflation have increased. Its next scheduled rate decision isn’t until October 28, so Canadians hoping for near-term relief on variable rates, or an easier renewal, may need to keep waiting.

While macro-level decisions remain on hold at the central bank, household finances require a more immediate, proactive strategy.

What Canadians can do while the dispute plays out

To navigate this ongoing uncertainty, consumers can take a few practical steps to protect their personal finances:

• Build a small buffer into your budget for goods you regularly buy that come from the U.S., since tariff costs take time to show up at the register.
• Comparison-shop Canadian-made alternatives before big purchases like furniture or appliances now subject to the new tariffs.
• If you’re renewing a mortgage soon, don’t assume rates are about to drop. Budget as though your payment could hold steady or rise until the Bank of Canada’s next decision.
• Avoid making big investment moves based on political rhetoric alone. So far, the measurable economic damage has been concentrated in specific export sectors, not the broader economy.

Whether Ottawa and Washington call it a war or “just business,” the costs of this dispute are landing in real dollars, in store aisles and on mortgage statements.

The steadier response for Canadians is the boring one: Budget for higher prices where tariffs apply, hold off on assuming rate relief is imminent, and watch for the Bank of Canada’s next move on October 28.