US-Canada trade war reignites as talks fail at last minute
While Carney walked back his most sweeping countermeasures last year, Trump remained irked by Canadian provincial leaders’ bans of American alcohol.
But unless courts block Trump from using the law this way, it could give him a powerful new method to impose tariffs of up to 50% on Canada — and potentially other trading partners — whenever his administration determines they are discriminating against American commerce.
Trump imposed tariffs on major Canadian industries, including autos, steel and aluminum, while Canada retaliated with its own measures.
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