Pennsylvania is more exposed to the latest U.S.-Canada trade fight than a typical state.
Gov. Josh Shapiro is now warning that President Donald Trump’s new 50% tariffs on Canadian goods could add pressure to families, farmers, and small businesses across the Commonwealth.
In a post on X, Shapiro argued that the new trade measures risk pushing up the cost of everyday necessities while damaging Pennsylvania’s relationship with one of its most important economic partners.
His criticism comes as the United States has imposed tariffs on about $20 billion of Canadian products after trade negotiations between Washington and Ottawa broke down.
Why Canada matters to Pennsylvania
Canada is not simply another overseas market for Pennsylvania.
It is the state’s largest international trading partner.
Pennsylvania exported about $13.9 billion in goods to Canada in 2025 and imported another $13.4 billion. Canadian companies also operated 812 business locations across the state, supporting roughly 32,000 jobs.
That makes the tariff dispute a direct economic issue for Pennsylvania rather than only a foreign-policy disagreement.
Trade between Pennsylvania and Canada supports activity across manufacturing, energy, pharmaceuticals, technology, agriculture and other industries.
What Shapiro said about Trump’s tariffs
Shapiro said the administration’s approach is hurting Pennsylvanians who are already dealing with the cost of groceries and gasoline.
He also argued that the policy risks weakening ties with Canada, which he described as one of the United States’ strongest allies.
The governor has taken a different approach to the relationship.
Earlier this year, Shapiro and Ontario Premier Doug Ford signed an agreement aimed at expanding cooperation in areas including energy, critical minerals, manufacturing, technology and agriculture.
What could happen next
The immediate question for Pennsylvania businesses is how much of the additional import cost will eventually reach companies and consumers.
The state has industries that depend on Canadian materials and cross-border commerce. Pennsylvania manufacturers, for example, can face higher input costs when imported materials become more expensive.
Canada has also announced dollar-for-dollar retaliatory tariffs beginning September 8, targeting selected U.S. products.
That could create another layer of pressure for Pennsylvania exporters.
For Shapiro, the dispute is therefore about more than the price of Canadian imports. It is also about whether Pennsylvania can maintain an economic relationship that has supported tens of thousands of jobs.
And with the new tariffs already in effect, the impact will increasingly be measured not in Washington statements, but in prices, orders, and jobs across the state.
