The Globe and Mail reports in its Saturday, Aug. 22, edition that Canada and the United States are escalating their trade war after failing to reach an agreement to avoid new tariffs on Canadian exports. The Globe's triple-bylined item led by Adrian Morrow reports that a 5-per-cent levy will impact about $28-billion of Canadian goods, roughly 5 per cent of Canada's exports to the U.S. In response, Ottawa plans retaliatory tariffs on $28-billion of U.S. products. Prime Minister Mark Carney late Friday said he was suspending trade negotiations with the U.S. He directed Canada's negotiators to return to Ottawa. The Globe says the entire deal would entail Canada accepting the end of the free-trade era with the U.S., which began with 1988's bilateral free-trade deal and continued with NAFTA and USMCA. Mr. Trump's tariffs contradict what he had agreed to before. In June, Mr. Carney said it was unacceptable for Mr. Trump to impose tariffs harming Canadian industries, saying, "We"re not going to accept a deal that damages those industries." On Friday the PM said, "Last-minute changes in the U.S. proposed terms were unfair, uneconomic and called into question the reliability of any deal."