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GEOFF: WELCOME TO THE NEWS HOUR. CANADIAN PRIME MINISTER MARK CARNEY SAYS CANADA WILL MOVE QUICKLY TO REDUCE ITS ECONOMIC RELIANCE ON THE U.S., AS RETALIATORY TARIFFS TAKE EFFECT ON ROUGHLY $20-BILLION WORTH OF AMERICAN GOODS. AMNA: THE TARIFFS -- SOME AS HIGH AS 50% -- MATCH DUTIES PRESIDENT DONALD TRUMP IMPOSED ON CANADIAN IMPORTS EARLIER THIS YEAR. THE LATEST ESCALATION FOLLOWS MONTHS OF STRAINED RELATIONS AND UNSUCCESSFUL TRADE NEGOTIATIONS BETWEEN THE TWO COUNTRIES.

AND FOR CANADA, TODAY'S CONFRONTATION MARKS A TURNING POINT WITH ITS MUCH LARGER NEIGHBOR.

THEY WERE ASKING FOR FAR TOO MUCH, AND OFFERING FAR TOO LITTLE. AMNA: JUST AFTER MIDNIGHT LAST NIGHT, ONE OF AMERICA'S CLOSEST ALLIES STRUCK BACK.

SINCE A FAIR DEAL WASN'T ON THE TABLE, WE MADE THE RIGHT CHOICE TO WALK AWAY FROM A BAD ONE. AMNA: CANADA IMPOSING NEW TARIFFS ON ROUGHLY $20 BILLION WORTH OF U.S. GOODS. TARGETING HUNDREDS OF PRODUCTS, FROM STEEL AND ALUMINUM, TO CLOTHING AND CHEESE. THESE RETALIATORY TARIFFS COME AFTER MONTHS OF BUILDING PRESSURE BY THE U.S.

TARIFFS ARE INCOMING ON CANADA TOMORROW. AMNA: IN FEBRUARY LAST YEAR, PRESIDENT TRUMP ANNOUNCED SWEEPING 25% TARIFFS ON MANY CANADIAN GOODS.

THEY NEED US TO SURVIVE. AMNA: IN JULY, HE ANNOUNCED NEW 50% TARIFFS, TARGETING ROUGHLY $20 BILLION IN CANADIAN PRODUCTS, INCLUDING WINE, DAIRY, CLOTHING AND HOCKEY EQUIPMENT. THOSE WENT INTO EFFECT IN LATE AUGUST. THE LATEST ESCALATION FROM CANADA FOLLOWS FAILED TRADE TALKS, MONTHS OF PRIVATE NEGOTIATIONS BETWEEN THE NEIGHBORING COUNTRIES, AND AN ONGOING PUBLIC PRESSURE CAMPAIGN BY PRESIDENT TRUMP FROM RENAMING LAKE ONTARIO, LAKE AMERICA --

ALL IT TAKES IS A GOOD PEN AND SOME INTELLIGENCE. AMNA: -- TO REPEATEDLY SUGGESTING CANADA SHOULD BECOME THE 51ST U.S. STATE. OVER THE WEEKEND, THE PRESIDENT POSTED THIS AI-GENERATED CARTOON, DEPICTING HIM LOOMING OVER CARNEY WITH A HOCKEY STICK, AND CALLING THE PRIME MINISTER, GOVERNOR. JUST YESTERDAY, TRUMP THREATENED TO BLOCK CANADIAN PLANE MAKER, BOMBARDIER, FROM SELLING JETS IN THE U.S. UNLESS IT MOVES PRODUCTION TO AMERICAN SOIL.

"THAT ERA IS OVER!" THE PRESIDENT WROTE. "IF THEY WANT OUR MARKET, THEY MUST BUILD HERE, AND STOP TREATING AMERICA LIKE A PIGGYBANK." WHILE THE TARIFFS ONLY AFFECT ABOUT 5 TO 6 PERCENT OF TOTAL GOODS EACH COUNTRY IMPORTS FROM THE OTHER, LARGER UNCERTAINTIES IN THIS NEW ERA OF U.S.-CANADA RELATIONS MAIN