US-Canada Trade War Looms as Trump Imposes New Tariffs

The US and Canada are on the brink of a full-scale trade war after President Donald Trump's administration imposed new tariffs on certain Canadian goods. The 50% tariffs, which took effect on Saturday, cover about $20 billion worth of Canadian exports to the US, including products like hockey sticks, furniture, and dairy products.

Canada has threatened to retaliate with its own tariffs, raising fears that the dispute could hurt the US economy. Economists warn that the impact could grow quickly if Canada responds and the Trump administration responds with even more tariffs.

'The bigger deal is uncertainty,' said Scott Lincicome, vice president of general economics at the Cato Institute. Changing tariffs has already created uncertainty throughout Trump's second term, making companies more cautious about spending and investing due to unpredictable trade costs.