00:00Canada rejected the U.S. trade deal.
00:02Now comes the economic cost.
00:04The U.S. put in place a new 50% tax on imports of hundreds of Canadian items,
00:08including furniture, plastics, electrical equipment, hockey gear.
00:12Prime Minister Mark Carney then announced that he'll respond with his own counter-tariffs
00:16on about $20 billion of U.S. products starting September the 8th.
00:21And his government pledged financial help for Canadian businesses caught in the crossfire.
00:25And then Donald Trump this morning threatened to ramp up the trade war even further.
00:29With 50% tariffs on Canadian autos and auto parts.
00:32The collapse of weeks of talks between Canada and the U.S.
00:36and the escalation of the tariff war will come at a price.
00:39The new U.S. tariffs are at such a high rate that it will cut off the world's biggest market
00:43for some Canadian enterprises.
00:45A University of Calgary economics professor estimated that 90,000 jobs may be lost in Canada
00:50if the new U.S. tariffs persist.
00:52And markets are responding to that.
00:54The Canadian dollar fell against the U.S. dollar this morning,
00:57leading losses among major currencies tracked by Bloomberg.
01:01Many small Canadian manufacturers were previously shielded from rounds of U.S. tariffs.
01:05But the new 50% levy, which was ordered by Trump under a never-before-used provision
01:10of the 1930 Tariff Act, ignores the trade deal known as USMCA.
01:15And Canada is likely to feel the economic effects of this dispute sooner and more acutely than the U.S.
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