Trump Tariffs on Canada Spark Trade War Fears

US President Donald Trump imposed new 50% tariffs on certain Canadian goods on Saturday, August 22, affecting products worth approximately $20 billion. The move follows failed trade talks on Friday. Canada's Prime Minister Mark Carney called it a trade war and announced retaliatory tariffs on US products like steel and dairy, effective September 8. Business groups warn the escalating dispute will raise costs for companies and consumers. The Business Roundtable, representing major US firms, urged a return to negotiations, while Canadian small business groups reported significant expected revenue losses. Economists caution that consumers ultimately bear the cost of tariffs.