The U.S. and Canada are locked in a tense trade standoff, slapping each other with new tariffs that threaten key industries and could derail efforts to update their major trade deal. While officials downplay the impact as a “tempest in a teapot,” experts warn the timing—especially auto tariffs hitting after midterms—could amplify political pressure. Though past disputes over dairy and lumber have flared up before, cooler heads usually prevail given how deeply intertwined their economies are. With cross-border electricity and essential resources at stake, and voters already feeling economic strain, analysts say both sides may avoid a full-blown trade war—and a third-party mediator could help ease tensions before things spiral further.
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