US-Canada trade war escalates over tariffs

The Trump administration has predicted its trade war with Canada will be "devastating" for the country, while Prime Minister Mark Carney has promised retaliatory tariffs beginning in September.

Trade talks between the two countries have broken down, with a former Canadian trade minister saying the US posture represents a permanent shift.

The escalating dispute is affecting businesses and consumers on both sides of the border.

Negotiations remain stalled as both sides dig in.