US and Canada Trade War Escalates, But Deal Possible

The U.S. and Canada have escalated their trade war with new tit-for-tat tariffs, though analysts believe the longtime allies may eventually reach a deal to end the conflict. Canadian Prime Minister Mark Carney responded to 50% U.S. tariffs on certain goods with retaliatory tariffs on $20 billion of American imports. Ontario Premier Doug Ford threatened to cut electricity and mineral shipments, while President Trump warned of further auto tariffs. Talks collapsed Friday, but experts note the tariffs cover only 5% of Canadian exports and retaliation doesn't start until Sept. 8. Both sides have time to negotiate, though Canada rejects a one-sided deal.