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Canada strikes back at US with retaliatory tariffs as trade war escalates

Aug 26, 2026
Canada struck back at the United States on Tuesday with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply. The confrontation threatened one of the world’s largest trading relationships and further strained ties between the United States and a country long considered one of its closest allies. A prolonged dispute could raise costs for American businesses and consumers less than 2½ months before the midterm elections.
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