U.S.-Canada Trade War Escalates as Retaliatory Tariffs Take Effect

Canada announced retaliatory tariffs of up to 50% on roughly $20 billion in U.S. imports Tuesday, escalating a trade war after negotiations collapsed over American demands and steep U.S. tariffs on Canadian goods. Prime Minister Mark Carney said he rejected a "bad deal" and pledged to match U.S. tariffs "dollar for dollar," calling the situation an attack on Canada. The breakdown followed disputes over metals, autos, the Keystone XL pipeline, and U.S. demands on Canadian content rules and French-language protections. The tariffs take effect Sept. 8, mirroring U.S. duties on Canadian steel, aluminum, and autos. Both nations face economic damage, with higher prices for consumers and potential layoffs in Canada, while further escalation remains possible.