US-Canada Trade Talks Collapse, Tariffs Threaten Both Economies

Negotiations between Washington and Ottawa collapsed, leading the US to impose 50% tariffs on Canadian goods and prompting threats of retaliation, raising fears of a full-scale trade war. Canada faces a greater economic threat, with analysts warning that expanded tariffs could shrink GDP by 2% and eliminate 90,000 jobs. US businesses in border states are also affected, potentially impacting Republican support in upcoming elections. Canada is leveraging its energy exports, which supply 60% of US crude oil imports, while the conflict threatens the USMCA trade agreement. Ottawa plans to announce retaliatory tariffs on September 8.