By Bradley Dress, Zack Budryk ( August 24, 2026, 16:26 GMT | Comment) -- The US and Canadian governments' failure to reach a trade deal last week puts the two countries on a rocky path as they must now grapple with the fallout of high tariffs and escalating tensions with no clear resolution, which is likely to create new regulatory and legal hurdles. The collapse raises questions about how far the standoff will go and it opens the door to litigation on the use of US Trade Act Section 338, which is untested before the courts, and other legal challenges that could arise over potential new tariffs imposed in the trade war. It also creates new hurdles for the US-Mexico-Canada Agreement, the trade pact signed during Trump's first term. The US and Canadian governments' failure to reach a trade deal last week puts the two countries on a rocky path as they must now grapple with the fallout of high tariffs and escalating tensions with no clear resolution, which is likely to create new regulatory and legal hurdles. ...
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