AP-The Morning Wire

"Canada's retaliatory tariffs take effect as trade war escalates."

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By Nadja Lovadinov September 08, 2026

Welcome back. After a long holiday weekend, there's no shortage of headlines to catch up on. In the news today: Canada’s retaliatory tariffs take effect; in a major escalation, Houthi attacks wound 73 people in Saudi Arabia; and a far-right victory in Germany reverberates across Europe. Also, the Bayeux Tapestry is back on British soil after nearly 1,000 years. Prime Minister Mark Carney speaks at the Alstom Plant in Thunder Bay, Ontario, Canada, on Sept. 3. (David Jackson/The Canadian Press via AP) US NEWS Canada’s retaliatory tariffs on $20 billion worth of US goods take effect Canada struck back at President Donald Trump on Tuesday with tariffs in an escalating trade war with the U.S. The tariffs hit hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%. Read more.

What to know: The current trade war began after Trump returned to office and imposed a series of tariffs on Canadian goods despite having negotiated and repeatedly praised the North American trade agreement during his first term. Many of those tariffs violate the pact. The outcome could resonate far beyond Canada, showing other governments whether a smaller U.S. ally can withstand Trump’s economic pressure. RBC Economics, the research arm of the Royal Bank of Canada, said the measures were unlikely to dent U.S. growth overall but could hit some businesses hard.

RELATED COVERAGE ➤ US tourism groups want to win Canadian visitors back. A testy trade war isn’t helping  The US tariff on Canadian imports could send already soaring hockey gear prices even higher  Trump wants voters to pretend he’s on the ballot. The Republican Party is going along for the ride  The GOP was confident about keeping its Senate majority. Now the fight for control is wide open  What to watch as Republicans gather in Dallas for Trump’s unusual midterm convention  New Hampshire voters pick nominees as Sen. Shaheen’s exit sparks a scramble for key seats WORLD NEWS Houthi attacks on Saudi Arabia ignite fires at oil facilities and wound 73 people, officials say The attacks early Tuesday hit “civilian and economic facilities,” Maj. Gen. Turki al-Malki, a spokesperson for the Saudi-led coalition fighting in Yemen, said. The Houthis claimed responsibility for the strikes, saying they were in response to recent Saudi attacks on the rebels across Yemen. Read more.

Why this matters: The flare-up delivered a new jolt to a region already mired in conflict,  bringing more uncertainty for the global economy. The fighting between Saudi Arabia and the Houthis threatens to squeeze shipping through the Bab al-Mandeb strait, a critical route off the Arabian Peninsula for oil and global trade. It also comes at a time when the Iran war has nearly halted shipments through the Strait of Hormuz, a key waterway that moved about one-fifth of the world’s oil before the war.

RELATED COVERAGE ➤ Houthis accuse Saudi Arabia of a strike on a prison in northern Yemen, killing 7, including a child  Houthi strikes hit Saudi Arabia, plus other key Mideast news  WATCH: Israeli strike hits close to a reporter live on air An Iranian port city feels the pain of Washington’s tightening economic measures  Iran increases gasoline price for its heaviest consumers as economy struggles  The Iranian school struck in the war’s earliest attacks is now a memorial for children WORLD NEWS German vote shows rise of far right in Europe, but it hasn’t been a steady march The first victory of the Alternative for Germany in a state election has renewed fears of an ascendant far right in Europe, as voters repeatedly vent discontent and mainstream leaders grapple with myriad crises, from affordability to Russian aggression. Read more.

Why this matters: But while anti-immigrant, pro-Russian parties have made inroads across the continent in recent years, there have also been notable reversals, and some have softened their views to build coalitions with moderates. Still, far-right leaders from Portugal to Austria celebrated the AfD’s win as they prepare for elections across Europe in the coming months. These will show whether the German vote was a watershed moment in the demise of an anti-fascist consensus dating back to World War II, or the latest in a series of elections worldwide in which frustrated voters simply cast out incumbents.

RELATED COVERAGE ➤ German leader under pressure after far-right state election triumph  Germany fights Gaza genocide claims at the top UN court  Russia shuts German consulate in St. Petersburg in tit-for-tat move after Leipzig drone incident  Hungary orders 10 Russian diplomats to leave the country over activities deemed unacceptable  EU seeks to reassure a Trump-rattled Greenland with promise of a new partnership and investment  UK government condemns anti-migrant protests at ports over Channel boat crossings ADVERTISEMENT IN OTHER NEWS READ Amazon cargo jet: Federal investigators probe runway crash that killed 5 in Miami  Hurricane Lowell: Major rains expected across Hawaii Renoir heist: Paintings stolen from small French museum ‘Practical Magic 2’: For Sandra Bullock and Nicole Kidman, new film heals old wounds  Today in History: In 1974, former President Richard Nixon was pardoned Worth your time, here’s what other readers like you are diving into: Can Prince Harry rebuild his relationship with Prince William? WATCH Indonesia volcano eruption: Anglers capture dramatic footage Grave-digging contest: Competition in Hungary spotlights a demanding profession ‘Let It Be’: Thailand and Singapore prime ministers perform Beatles hit A CHANGE OF PACE The Bayeux Tapestry is displayed at the British Museum in London, Monday. (AP Photo/Kin Cheung) The Bayeux Tapestry is a hot ticket at the British Museum Like a medieval comic strip, complete with 58 vivid embroidered scenes, the panorama tells the story of the Norman conquest of England in 1066. It goes on public display in London this week —  the first time it’s been back on British soil since the 11th century. King Charles III and French President Emmanuel Macron have already stopped by for a private viewing, adding to the buzz. Tickets are already sold out for months ahead, but we managed to get a peek. At 230 feet long, take a look at just how big the tapestry really is.

That's all for today. Know someone who would enjoy Morning Wire? Forward this newsletter to them. They can also sign up here. - Nadja

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