Canada pushes back in trade war with US, testing Trump's limits

Canada has pushed back in its trade war with the US, potentially demonstrating that President Trump's power is not unlimited. The two countries have imposed new tariffs on each other following the collapse of trade negotiations. The breakdown came after Vice President JD Vance mocked Canadian Prime Minister Mark Carney at a Republican fundraiser, suggesting Canada would yield to US pressure. Canada's decision to walk away from talks has led to new tariffs between the neighbors, whose annual trade exceeds $872 billion. The dispute stems from Trump's view that Canada benefits disproportionately from trade and contributes too little to regional defense. Canada is now exploring economic leverage points, including potential restrictions on energy exports and consumer boycotts of American goods.