US escalates trade war with Canada despite deep economic interdependence

Washington has imposed new tariffs and bans on Canadian goods, escalating a trade conflict despite the two economies' deep mutual dependence in oil, manufacturing, and cross-border supply chains. The move marks a sharp departure from the historical pattern of managed trade disputes between the allies, raising uncertainty over the trajectory of bilateral economic relations. The escalation pressures both governments to negotiate, but the immediate impact is higher costs and disrupted trade flows.