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The U.S. and Canada are locked in a bitter trade war, with the U.S. slapping 50% tariffs on $20 billion in Canadian goods and Canada preparing to retaliate on September 8th. Talks collapsed late Friday, leaving both sides defiant — Prime Minister Carney calling it an economic attack, while U.S. Trade Rep Jamieson Greer insists countermeasures are needed to protect American workers. Canada had been willing to drop its own tariffs and allow U.S. alcohol sales, but rejected Washington’s final demands as too steep and unreasonable. The U.S. reportedly added last-minute conditions that would restrict Canadian auto tariff relief, limit trade deals with other nations, and weaken cultural protections — moves Carney called unacceptable. What was once a path to compromise now looks like a full-blown crisis, threatening the future of North American trade and sparking major political and economic fallout.
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