Canada braces for prolonged trade war as counter-tariffs on US take effect

Both US and Canadian officials have said they would like to strike a deal, but no movement has been made to resume talks after they collapsed in late August.

With new US tariffs and Canadian counter-tariffs now in effect, businesses on both side are scrambling to deal with what comes next.

These levies are in addition to existing retaliatory taxes Canada had placed on finished American cars and trucks that are non-compliant with a free trade agreement between Canada, the US and Mexico, known as the USMCA in the US and CUSMA in Canada.