US tariffs on Canada shatter a once-close alliance
Canada and the United States face a full-scale trade war after negotiations collapsed Friday, fundamentally altering their long-standing alliance. Prime Minister Mark Carney said "America has changed" and the countries will "not return to our old relationship." The U.S. imposed 50% tariffs on about $20 billion of Canadian goods Saturday, with Canada pledging to match dollar for dollar. Carney suspended negotiations and recalled Canada's trade team after accusing Washington of last-minute changes that were "unfair, uneconomic, and called into question the reliability of any deal." The dispute extends beyond tariffs, with President Donald Trump questioning Canada's viability and suggesting statehood. Canadian travel to the U.S. remains sharply down, with July car trips falling nearly 29% and air trips 27% from a year earlier. Nearly three-quarters of Canada's goods exports go to the U.S., whose economy is roughly 10 times larger, limiting Ottawa's retaliation capacity. Experts say the rupture likely outlasts Trump, with protectionism expected to influence future administrations. Canada is pursuing diversification, including a new Pacific pipeline, while provincial leaders back Carney's "elbows up" stance.