The Trump administration imposed a 50% tariff on $20 billion worth of Canadian goods on August 22, triggering declines in US stock futures for the S&P 500, Nasdaq 100, and Dow Jones. Ottawa is retaliating with reciprocal tariffs on American imports, set to take effect on September 8, targeting steel, dairy, and various consumer goods. Negotiations between Washington and Ottawa collapsed on August 21, leaving nearly $900 billion in annual trade at risk. More than 500 product categories are affected, including softwood lumber, steel, appliances, and agricultural products, with particular impact on the North American automotive and manufacturing sectors. The USMCA framework, designed to prevent precisely this kind of escalation, is now being tested as no resolution appears imminent.
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