Rob GilliesAug 26, 2026 – 10.03amToronto | Canada struck back at the United States on Tuesday (Wednesday AEST) with retaliatory tariffs on about $US20 billion ($28 billion) worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbours escalated sharply.The confrontation threatened one of the world’s largest trading relationships and further strained ties between the United States and a country long considered one of its closest allies. A prolonged dispute could raise costs for American businesses and consumers just over two months before the midterm elections.APSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles