Two neighboring economies, long bound by mutual dependence, now find themselves caught in a cycle of measure and countermeasure that neither side seems able to stop. Canada's Finance Minister Carney faces a defining choice at a cabinet retreat: escalate retaliatory tariffs against the United States or hold back and risk appearing to yield. The American response to Canada's initial trade strike — new tariffs and border closures — has raised the stakes considerably, and the path back to negotiation grows narrower with each exchange. What unfolds in the coming days may determine not just trade po