Canada hits back with tariffs on U.S. goods

Canada announced retaliatory tariffs on U.S. goods ranging from 15% to 50% on Tuesday, escalating a trade war between the historic allies. The measures take effect September 8. Ottawa's tariffs match U.S. levels imposed Saturday on Canadian steel, dairy, and electronics, affecting about $20 billion in goods. Canada also unveiled a $5.4 billion aid package for impacted businesses and workers. Canadian exports to the U.S. represent 70% of its total. Analysts warn of further escalation, as Trump threatened to double tariffs on Canadian autos next year.