The U.S. and Canada are locked in a high-stakes trade standoff after the U.S. threatened a 50% tariff on $20 billion in Canadian goods, prompting Canada to vow dollar-for-dollar retaliation. Canada rejected the latest deal as unfair, especially on steel, aluminum, cars, and lumber, citing last-minute U.S. changes. With bilateral trade totaling $880 billion last year, this dispute isn’t just about numbers—it’s a major test of the alliance. Though the deadline was pushed back for more talks, no agreement emerged, leaving the situation unresolved and tensions escalating.
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