US weighs new trade penalties on Canada after talks collapse

The Trump administration is considering additional trade penalties against Canada after Prime Minister Mark Carney imposed dollar-for-dollar retaliation on new US tariffs, a White House official said. Further escalation could include higher tariffs and other actions. Talks between Trump and Carney broke down late Friday, triggering 50% tariffs on about $20 billion in Canadian goods under a never-used provision of the 1930 Tariff Act. Canada responded Tuesday by doubling counter-tariffs on US steel and aluminum to 50%, affecting $20 billion in annual exports. The new Canadian measures, effective Sept. 8, target states like Ohio, Michigan, and Pennsylvania, potentially complicating Republican midterm campaigns. Ontario Premier Doug Ford urged a truce, supporting Carney's retaliation while calling for renewed negotiations.