U.S.-Canada Trade War Escalates After Talks Collapse

The U.S.-Canada trade dispute is escalating quickly.
The United States has imposed 50% tariffs on roughly $20 billion of Canadian goods after negotiations between the two countries broke down.
Canada is now preparing a dollar-for-dollar response, with retaliatory tariffs scheduled to take effect on September 8.
For now, Washington says no new negotiations are planned.
That raises the risk that the dispute lasts longer than markets initially expected.
The two economies are deeply integrated across autos, energy, food and industrial supply chains, so prolonged tariffs could raise costs on both sides of the border.
What looked like a near-term trade deal has now turned into a full retaliation cycle.
The next question is how far both sides are willing to push it.