Overview
- The United States applied 50% duties under Section 338 on roughly $20–28 billion of Canadian goods after negotiations fell apart, with the U.S. levies taking effect Saturday.
- Canada suspended talks and announced dollar‑for‑dollar retaliatory tariffs set to start Sept. 8 while unveiling a $7.5 billion support package for affected firms and workers.
- Ottawa raised existing duties on steel and aluminum to 50% and listed hundreds of U.S. consumer and industrial products as targets for countermeasures.
- Provinces are split on tactics: some leaders urge renewed talks or restraint, others threaten export cuts or stronger measures such as export taxes on energy and minerals.
- Analysts warn the dispute could cost many jobs, push up costs for North American manufacturers and consumers, invite court challenges to the rare Section 338 move, and shape political terrain ahead of the U.S. midterms.