White House weighs new trade penalties after Canada's retaliation

The Trump administration is discussing additional trade penalties against Canada after Prime Minister Mark Carney announced dollar-for-dollar retaliation to new U.S. tariffs, a White House official said. Higher tariffs and other actions are under consideration. The official said a response to Canada's latest moves is expected, underscoring the prospect of a spiraling trade war. Trump has already promised to double auto tariffs to 50 percent and impose parts tariffs after talks broke down late Friday. Canada's counter-tariffs, effective Sept. 8, target $20 billion in U.S. exports, hitting states like Ohio and Michigan. Ontario Premier Doug Ford called for a truce, supporting Carney's retaliation policy.