US, Canada trade war erupts

Negotiations between Washington and Ottawa broke down over last-minute U.S. demands that Ottawa said would undermine its economy.

The 50% tariffs now apply to a wide range of Canadian goods, including aluminum, dairy, and machinery.

Canada says it will respond with counter-tariffs on U.S. steel, appliances, and agriculture products, starting September 8.

The failed talks have sharply escalated tensions between two long-time allies and roiled the North American economy.