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Canada has imposed 25% retaliatory tariffs on $155bn worth of US goods, mirroring President Trump’s tariffs on Canadian and Mexican imports. Prime Minister Trudeau emphasized standing up for Canadians while warning of economic consequences. The tariffs target American beer, wine, household appliances, and more. Economists predict rising consumer prices as the trade war escalates. The White House defends tariffs as a crackdown on drug trafficking, but Trudeau refutes security concerns. Trump signals further tariff hikes if met with retaliation, deepening tensions between the neighboring nations.

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