US Reignites Trade War Against Canada & CDs Are Making a Comeback

The U.S. has rekindled its trade war with Canada less than 48 hours after the two nations jointly hosted a World Cup match, while the FDA retracted a positive test for the parasite cyclospora in Taco Bell lettuce—though the agency still blames the same supplier. Meanwhile, the UK has a new prime minister, CDs are making a comeback driven by Gen Z and K-pop, and the FDA’s lettuce mix-up has dragged down restaurant stocks well beyond Taco Bell.

Tariffs Return: 50% on Canadian Goods Under an Obscure Law

The Trump administration announced 50% tariffs on a range of Canadian goods—including milk, cream, alcohol, and hockey equipment—set to take effect in 30 days. The White House frames this as retaliation for Canada’s treatment of American products like cars, dairy, and alcohol. Crucially, Canada’s largest exports to the U.S.—auto parts, steel, and energy—are exempt from this round.

The legal mechanism matters. The tariffs are being applied under Section 338 of the 1930 Tariff Act, an obscure New Deal-era law that has never before been used to levy tariffs on a trading partner. This follows the Supreme Court ruling earlier this year that deemed most of Trump’s prior tariffs illegal. The invocation of Section 338 is, in the words of Cato Institute vice president Scott Lincoln, “the nuclear option for Trump tariffs.” It almost certainly will be challenged in court.