Canada Hits Back at US Tariffs in Escalating North American Trade War

A full-scale trade war has erupted between Canada and the US after high-stakes negotiations collapsed on Friday.

The dispute centers around $20 billion worth of Canadian imports, including industrial raw materials like steel and aluminum, which were targeted by the US with 50% tariffs under Donald Trump's administration.

Canadian Prime Minister Mark Carney rejected last-minute demands from US negotiators, calling the proposed terms unfair and unreliable. In response, Carney suspended negotiations, recalled his diplomatic team, and pledged to match US tariffs 'dollar for dollar' to defend Canada's domestic economy.