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(Provided by KKIDD\/iStockPhotos)<\/p>\n
The U.S. and Canada, two countries with deeply integrated economies and longstanding cultural ties, are now in a trade war. The likely result will be higher prices for consumers and businesses on many goods.<\/p>\n
Canadian Prime Minister Mark Carney announced Friday<\/a> that final negotiations on a trade agreement between the two allies had collapsed, with Carney saying the U.S.\u2019 demands for a deal were \u201cunfair.\u201d U.S. President Donald Trump responded with a Truth Social post<\/a> that said Canada wants the benefits of being a U.S. state while maintaining its independence. \u00a0\u00a0<\/p>\n No new talks are planned. Now 50% tariffs<\/a> on numerous Canadian products are in effect. This includes new levies on alcohol, honey, tools and certain types of machinery. Altogether, about $20 billion worth of Canadian products are impacted.<\/p>\n The sudden end to the discussions took many observers by surprise. In announcing the tariffs last month, the White House included a 30-day reprieve to give negotiators time to reach a deal. And in recent days, it appeared that an agreement was imminent. Trump extended the deadline<\/a> and even announced on social media that a deal had been reached.<\/p>\n But consensus on final details was difficult. Politico reported<\/a> that last-minute Canadian requests for lower tariffs on heavy trucks and U.S.-inserted provisions involving French-Canadian culture helped skuttle the deal. Turf wars within the White House also hampered a final agreement, Politico said. Commerce Secretary Howard Lutnick was not happy with some of the language negotiated by U.S. Trade Representative\u00a0Jamieson Greer and felt his office wasn\u2019t kept informed.<\/p>\n The prime minister said Canada would match America\u2019s tariffs \u201cdollar for dollar\u201d to protect its industries.<\/p>\n