President Donald Trump has widened his trade fight with Canada by invoking a trade law that dates to the 1930s Depression era, according to Insight News.
Nunissum reported last month that Washington was applying similar tariff pressure on Canada and India. The dispute with Ottawa has since moved from threats to active legal escalation.
Republican lawmakers have rallied behind Trump's approach to Canada, according to CBC, giving the White House political cover as the fight intensifies with a longtime ally.
The escalation has rattled financial markets in New York, according to Yahoo Finance, as investors price in the risk of a prolonged trade fight with a G7 partner.
Border states are positioned to suffer the heaviest losses, according to Financial Post, given their economies' dependence on cross-border trade with Canada.
Supply chains for autos, energy and agriculture run across the U.S.-Canada border, raising the risk of disruption on both sides if the fight drags on.
What to watch: whether Ottawa retaliates, whether Republican support holds if market losses deepen, and whether Washington applies the same Depression-era law to its dispute with India.