The US and Canada have broken off trade talks, and both sides are now piling on tariffs — bad news for carmakers, shoppers, and anyone counting on cheap energy.

• Canada walked away from the table, saying it will match every US tariff dollar for dollar.
• Trump threatened 50% tariffs on Canadian cars, trucks, auto parts, and steel starting January 2027.
• The first round of tariffs hits things like beer, cement, and hockey gear, but the real exposure is cars, machinery, and energy.
• Canada holds the stronger hand on energy: it supplies most of the imported crude oil and nearly all the imported natural gas the US uses.
• Mark Carney says Canada is deliberately cutting its dependence on the US and will not be pressured into a deal.

Outlook: Expect higher prices on cars and other goods, with energy the pressure point Canada can squeeze if the fight drags on.