US-Canada Trade Talks Collapse Amid Rising Tensions
Canada and the US trade talks have broken down, leading to tariffs on both sides. The US will impose 50% tariffs on some Canadian goods starting September 8, with Canada retaliating in kind. Prime Minister Mark Carney said that the US introduced last-minute changes that would have negatively affected Canada's economy and sovereignty.
US President Donald Trump threatened to impose additional tariffs on vehicles, automotive parts, and steel by New Year's Day. This comes after US Treasury Secretary Scott Bessent called Monday 'an economic D-Day', referring to the US's plan to hit Iran with significant financial penalties.
The situation escalated as Iran said it would shut down all oil exports from the region if the war continues, causing its currency, the rial, to hit a record-low of 2.02 million to the US dollar on Monday.