US and Canada Trade War Escalates With New Tariffs

The U.S. and Canada have escalated their trade war with new tit-for-tat tariffs, though analysts believe the allies may eventually reach a deal to end the conflict. Canadian Prime Minister Mark Carney retaliated against new 50% U.S. tariffs by targeting $20 billion in American imports, including steel and dairy. Ontario Premier Doug Ford threatened to cut electricity shipments, while President Donald Trump warned of further auto tariffs. Talks collapsed Friday after Canada rejected U.S. demands, citing threats to its industries and sovereignty. Retaliatory tariffs take effect Sept. 8, and U.S. auto tariffs wouldn't start until Jan. 1, leaving time for negotiation. The countries traded $880 billion last year.