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The trade war between Canada and the United States is escalating after the latter imposed a 50% tariff on Canadian imports exceeding $20 billion. In response, Canada has implemented retaliatory tariffs on American products, including steel, electronics, and agricultural goods. Both sides have expressed deep disagreements; the American trade representative described the dispute as a "missed opportunity" for Canada, while Canada has affirmed its intention to respond in kind to protect its economic interests. The escalation threatens to halt trade negotiations and jeopardize their trade agreement, with potential impacts on key sectors such as automotive, turf, and wine—especially since Canada relies on the United States for 70% of its exports.
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