Canada US Trade

The U.S. and Canada have ramped up their trade war, hitting each other with steep new tit-for-tat tariffs. Despite the bravado coming from both sides of the border over the past few days, though, analysts suspect the longtime allies will eventually strike a deal to end a conflict neither really wants. The prospects for compromise looked bleak Tuesday, with Canadian Prime Minister Mark Carney reacting to new 50% U.S. tariffs on certain Canadian goods by responding in kind on about $20 billion worth of American imports, including steel, dairy products, appliances and farm equipment. With the breakdown threatening to harm one of the world’s largest trading relationships, experts say there’s still time to avoid an even bigger trade war.