Canada hits back with tariffs on $20B in US goods as trade war escalates

Canada has imposed retaliatory tariffs on about $20 billion in American goods, including steel, dairy, appliances, and farm equipment, sharply escalating the trade war between the two nations. The move threatens one of the world's largest trading relationships and could raise costs for U.S. businesses and consumers. The new tariffs extend beyond industrial goods to everyday items like seafood, cheese, clothing, cosmetics, and toilet paper, with some duties reaching as high as 50%. Canadian Prime Minister Mark Carney said, "You're at war when you get attacked. We got attacked," responding to new U.S. tariffs on Canadian goods. Analysts predict the longtime allies will eventually strike a compromise, though prospects appear bleak. Former U.S. trade negotiator Wendy Cutler noted, "If there is political will, there is an off ramp." The dispute comes less than 2.5 months before U.S. midterm elections.