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US Tariffs on Canadian Goods Trigger Supply Chain Disruption

The United States imposed 50% tariffs on billions of dollars of Canadian imports Saturday after trade negotiations collapsed. The tariffs escalated tensions between the two nations and threatened deeply integrated cross-border supply chains covering cement, dairy products and numerous other goods. Canada, the second-largest U.S. trading partner, recorded $9 billion in cross-border freight during June. The countries maintain particularly intertwined supply chains in motor vehicles, machinery and energy products. Heavy-duty truck tariffs emerged as a central dispute, with Canada pushing for tariff relief on medium- and heavy-duty vehicles while U.S. negotiators resisted. The disagreement directly affects General Motors and Ford, which operate Canadian manufacturing facilities. Canada announced retaliatory tariffs valued at $8 billion, setting the stage for further escalation. U.S. Trade Representative Jamieson Greer blamed Canadian negotiators for seeking additional concessions in final stages, while Canadian Prime Minister Mark Carney countered that Washington imposed unfair last-minute demands.