A trade war between Canada and the US further ruptures a once-close and durable alliance

TORONTO (AP) – For decades, Canada built much of its prosperity on privileged access to the United States.

TORONTO (AP) – For decades, Canada built much of its prosperity on privileged access to the United States. After the collapse of trade discussions, one of the world's closest and most durable alliances has been fundamentally altered, with both countries facing the risk of a full-scale trade war, now.

Prime Minister Mark Carney acknowledged the break after last-ditch negotiations failed Friday, saying Canada had recognized that "America has changed" and that the countries would "not return to our old relationship."

For context, the United States imposed 50% tariffs on regarding $20 billion worth of Canadian goods early Saturday. Carney remarked Canada would retaliate dollar for dollar beginning Sept. 8, targeting sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

Carney foreshadowed the shift at the World Economic Forum in Davos in January, declaring that the world was experiencing "a rupture, not a transition" and urging countries such as Canada to reduce their vulnerability to economic coercion by strengthening their economies at home and diversifying abroad.

Taken together, the developments around a trade war between Canada and the US further ruptures a once point to a situation that is still moving, and the coming days should bring more clarity.