Analysts said Pennsylvania didn’t appear to be a principal target. “But unfortunately, it’s one of the states that does a lot of goods transfer with Canada, and unfortunately, they’re hit in the crossfire,” said Kyle Peacock, a trade expert and founder of Peacock Tariff Consulting.

Canada Prime Minister Mark Carney and U.S. officials provided different explanations for the trade deal’s collapse.

Canadian government officials said they are also providing aid for workers and businesses that could be hurt by U.S.-imposed tariffs.

The United States imposed 50% tariffs on $20 billion worth of Canadian products early Saturday, and Canada immediately said it would retaliate, after last-ditch negotiations failed.

The boom in the defense sector reflects Canadian Prime Minister Mark Carney’s vow to strengthen the country’s economic self-sufficiency amid fraying relations with Washington, including a fresh escalation this week with new rounds of tariffs.

A crackdown on American academia by the Trump administration has handed Canadian universities a rare opportunity to lure some top researchers north.

Mike Smith of Windsor said he is such a big supporter of Trump that he would like him to take over Canada. He believes it would lead to an economic renaissance. But Smith said he doesn’t understand all the petulant moves Trump makes against Canada, such as badmouthing the country and slapping tariffs on its goods.

President Donald Trump keeps attacking Canada with fiction instead of fact.

The United States and Canada, historically close allies, are moving further into a full-blown trade war with no end in sight. On Aug. 25, 2026, Canada imposed tariffs of up to 50% on hundreds of U.S.