U.S. Debt Crisis Warning & Long-Term Treasury Yields Spike

The United States imposed 50% tariffs on approximately $20 billion worth of Canadian goods at 12:01 a.m. ET on August 22, after trade negotiations between the two countries collapsed late Friday . The tariffs cover products including wine, furniture, dairy, cement, clothing, fishing rods, and hockey equipment, and notably do not exempt goods previously protected under the USMCA . Prime Minister Mark Carney announced Canada will retaliate with dollar-for-dollar tariffs targeting U.S. steel, dairy, appliances, agricultural equipment, pulp, paper, and electronics, effective September 8 . "You're at war when you get attacked. We got attacked," Carney said . Carney suspended trade negotiations and recalled Canadian negotiators from Washington, citing last-minute U.S. demands he called "unfair, uneconomic, and called into question the reliability of any deal" . U.S. Trade Representative Jamieson Greer stated no new talks are scheduled . The collapse has cast doubt on the future of the USMCA free trade pact .