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Tariff Escalation Threatens Cross-Border Supply Chains for Agriculture, Packaging

Escalating trade tensions between the US and Canada threaten to disrupt supply chains and raise costs across multiple sectors, industry groups warned this week. Agriculture, packaging, and consumer goods manufacturers face particular exposure as retaliatory tariffs multiply. Fiber, metal, and glass packaging producers are bracing for increased expenses that will ripple through both economies' supply chains. Canada exempted approximately C$1.1 billion in American fish and seafood products from planned tariffs, offering limited relief to Maine and Alaska exporters. The dispute arrives as Canada's current account surplus reached its highest level since 2005, bolstered by record crude oil and bitumen shipments. The US merchandise-trade deficit widened in July to its largest level in 16 months, driven by a surge in capital equipment imports. Both nations face mounting economic pressure as the tariff war intensifies.