U.S.-Canada Trade War Escalates With New 50% Vehicle Tariffs

Trade talks between the U.S. and Canada have collapsed, escalating their trade war with new 50% tariffs on roughly $20 billion in Canadian exports, including vehicles and parts. The breakdown stemmed from unresolved auto issues, including U.S. restrictions on tariff relief to light-duty vehicles only, leaving 25% tariffs on heavy trucks, and disagreements over widening parts exemptions. Canadian Prime Minister Mark Carney called the U.S. terms "uneconomic, unfair," while Washington blamed Canada for last-minute demands. Canada plans to retaliate with matching duties on appliances, dairy, electronics, and other goods starting September 8. Automakers with operations in both countries face higher costs on every truck and SUV built in Canada, which will likely be passed to consumers.