US-Canada Trade War Escalation: Talks Collapse, 50% Tariffs in Effect

The US-Canada trade war has escalated sharply. Last-minute talks to avoid 50% tariffs under Section 338 collapsed after Canada rejected US terms, calling them unfair. The tariffs are now in effect on $20B+ of goods, and Canada will retaliate dollar-for-dollar. The sticking points include US demands to restrict Canada's future trade autonomy, auto tariffs, and cultural/language rules. Internal White House dysfunction is exposed, with Commerce Secretary Lutnick and USTR Greer at odds. A new analysis calls it 'the dumbest trade war ever,' highlighting the self-inflicted economic damage and political fallout. This is a major economic shock affecting consumer prices, supply chains, and US-Canada relations, and challenges Trump's dealmaker narrative ahead of midterms.