US and Canada Trade War Escalates, but Analysts See Possible Deal

The U.S. and Canada have escalated their trade war with steep new tit-for-tat tariffs, though analysts believe the longtime allies may eventually reach a deal to end the conflict neither wants. Canadian Prime Minister Mark Carney responded to new 50% U.S. tariffs by imposing counter-tariffs on about $20 billion worth of American imports, including steel, dairy, and appliances. Ontario Premier Doug Ford threatened to cut electricity and mineral shipments, while President Donald Trump warned of further auto tariffs. Experts note the current U.S. tariffs cover only about 5% of Canadian exports, with minimal economic impact projected. Former negotiator Wendy Cutler said an "off ramp" exists, citing the nations' history of resolving disputes despite tense talks.