Canada-US Trade Talks Collapse as Tariff Threat Looms

Negotiations between Canada and the US to avoid another round of tariffs broke down on Friday night, leaving the two countries at odds over trade.

The dispute centers around a 50% tariff that the US threatened to impose on roughly 5% of Canada's exports last month, citing claims that Canada was discriminating against American goods.

This move is seen as an escalation in the ongoing trade war between the two countries, with Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, warning that it could prolong US inflation.