US-Canada Trade War Escalates with New Tariffs and Retaliatory Measures

The trade dispute between the United States and Canada has intensified, with both nations imposing new tariffs. Canada announced plans to implement tariffs of up to 50% on approximately 700 American products, including steel, aluminum, furniture, and dairy, effective September 8th. These measures are in retaliation for new U.S. duties on about $20 billion of Canadian goods, which followed collapsed trade talks. U.S. President Donald Trump also criticized the long-standing exchange-rate gap between the US and Canadian dollars as "unacceptable." The escalating tariffs are expected to strain the $715 billion trading relationship and could have serious consequences for both economies and cross-border supply chains.