Trump administration weighs more trade penalties on Canada

NEW: The Trump administration is weighing additional trade penalties against Canada, including higher tariffs, after Prime Minister Mark Carney responded to new U.S. tariffs with dollar-for-dollar retaliation.
The dispute is moving beyond a single round of tariffs and toward a broader escalation cycle.
That raises the risk of higher costs across deeply integrated North American supply chains and could put additional pressure on trade-sensitive sectors and currencies.
The key question is whether both sides keep matching each other's measures or return to negotiations.