US and Canadian tariffs are set to target everyday goods, and your wallet

The political fight between the U.S. and Canada is now impacting your money, as the U.S. slaps 50% tariffs on a long list of Canadian goods.

"What it actually means for Americans is a new 50% tax," said David Eby, British Columbia Premier. "It is a bizarre policy for Americans. It's going to hurt them."

On the list of items set to get more expensive: Alcohol, dairy, clothing & home goods, and lumber and wood products.

"Some of the products that come from Canada like lumber, for example, very, very important in the us building trades, energy, these are things that Americans are already feeling a pinch on," said Rana Foroohar, associate editor at the Financial Times.

Some of the more niche products on the list include candles, essential oils, honey and Christmas ornaments.

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Analysts say the targeted products will face increased price pressure across the board. But the extent of price increases will vary for each item, and for now should be modest.

On Tuesday, Canada formally announced retaliatory tariffs, matching U.S. tariffs dollar for dollar. They are set to take effect in September.

"Canada's counter tariffs are designed primarily to provide protection for Canadian industry impacted by U.S. tariffs," said Franois-Philippe Champagne, Canada's Minister of Finance and National Revenue. "It's all about fairness. It's all about level playing field."

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These retaliatory tariffs will hit steel, dairy, appliances, agricultural equipment and electronics.

If there is weaker demand for these goods as a result of the steep Canadian tariffs, American workers could see reduced hours or even layoffs.

Trade experts warn if this standoff drags on, more everyday goods, and your wallet, could get caught in the crossfire.