US-Canada Trade War Escalates as Tariffs Take Effect

The trade war between the US and Canada has escalated, with both sides imposing tariffs on each other's goods. US Trade Representative Jamieson Greer announced that new duties have taken effect, and Prime Minister Mark Carney warned that Canada will retaliate in kind.

Economists are warning of potential risks to the US economy, citing uncertainty as a major concern. Constant shifts in tariff policy have already had an impact on markets, consumer prices, and cross-border investment.

Analysts predict that further escalation could weigh heavily on manufacturing and complicate the Federal Reserve's inflation fight. Lawmakers are divided, with some criticizing the move and others expecting a deal to be reached in the end.