OVERNIGHT: Canada ESCALATES trade war with NEW TARIFFS

"FOX & FRIENDS" STARTS RIGHT. NOW. >> Brian: THE TRADE DISPUTE. BETWEEN THE U.S. AND CANADA IS. ESCALATING. CANADA THROUGH RETALIATORY. TARIFFS APPROXIMATELY. $20 BILLION WORTH OF U.S. PRODUCTS TAKING EFFECT. OVERNIGHT. >> Lawrence: SOME TARIFF ALSO BE. AS HIGH AS 50% AND WILL BE. APPLIED IN A RANGE OF GOODS, INCLUDING STEEL AND MILK. >> Ainsley: ALEX HOGAN IS LIVE. FOR US. >> GOOD MORNING. NEW POLICY PRESSURE THIS MORNING.

AS OF HOURS OBLIGOR THOSE. CANADIAN RETALIATORY TARIFFS ARE. NOW IN EFFECT. THE LATEST ESCALATION IN THE. TRADE WAR BETWEEN THE TWO. COUNTRIES AND STARTING TODAY. THOSE TARIFFS HIT HUNDREDS OF. AMERICAN PRODUCTS ON $20 BILLION. OF GOODS. CANADA IS IMPOSING GOODS AS HIGH. AS 50% ON MILK, STEEL, AND. ALUMINUM PRODUCTS. 20% ON CHEESE, PAPER OR. HOUSEHOLD APPLIANCES. THE 50% TARIFFS ON CANADIAN. GOODS INCLUDE PRODUCTS RANGING. FROM WINE TO HOCKEY EQUIPMENT. AND CEMENT, WITH SEVERAL KEY.

CANADIAN EXPORTS INCLUDING. ENERGY AND CRITICAL MINERALS. EXEMPT. PRESIDENT DONALD TRUMP YESTERDAY. STATED THAT CANADIAN PRIVATE JET. MAKER BOMBARDIER WOULD NO LONGER. BE ABLE TO SELL PLANES IN THE. U.S. WRITING IN PART, QUOTE: OVER 50% OF THEIR REVENUE COMES. FROM THE UNITED STATES AND, QUOTE: IF THEY WANT OUR MARKET, THEY MUST BUILD HERE AND START. TREATING AMERICA LIKE A PIGGY. BANK. CANADIAN PRIME MINISTER MARK. CARNEY ARGUED THAT THE TRUMP. ADMINISTRATION HAS OFFERED TOO O.

MUCH AND OFFERED TOO LITTLE. MESSAGING SIGNALED UNWILLINGNESS. TO NEGOTIATED TO FIND SOLUTION. HE WROTE THIS WHEN AMERICANS. STOP DOING MEAN AND THROWING. SHADE AND STOP BEING TOUGH AND. START BEING SERIOUS ABOUT HAVING. THOSE DISCUSSIONS WE CAN HAVE. THOSE DISCUSSIONS. CANADA IS THE SECOND BIGGEST. U.S. EXPORT TRADING PARTNER. AFTER MEXICO ACCORDING TO THE. CENSUS BUREAU. AND # 6% OF CANADA'S TOTAL. EXPORTS IN JULY WENT TO THE U.S. STILL, THAT'S DOWN FROM 69%, THE.

MONTH BEFORE, AND 72% A YEAR. AGO. BACK TO YOU. >> Ainsley: THANK YOU SO MUCH, ALEX. IT TARGETS ABOUT 4.5% TO #% OF. ALL OF THE U.S. EXPORTS TO. CANADA ANNUALLY. 50% TARIFFS, SHE MENTIONED. STEEL, ALUMINUM, IRON, CLOTHING, PERFUME VIDEO GAME CONSOLES AND. GOLF CLUBS. 20% TARIFFS ON APPLIANCES LIKE. STOVES AND AIR CONDITIONERS, CHEESE AND DAIRY PRODUCTS, 15%.

ON U.S. ELECTRONICS MACHINERY. AND TOOLS. >> Brian: THIS DEAL WAS DONE. THE PRESIDENT A FEW FRIDAYS AGO. LOOKS LIKE WE ARE DONE WITH THAT. THEN ALL OF A SUDDEN CARNEY CAME. BACK AND SAID WE'RE NOT GOING TO. BE ABLE TO DO IT IN THIS CURRENT. SITUATION. HOWARD LUTNICK GOT ON THE PHONE. AND SAID WHAT YOU TALKING ABOUT? THEY STARTED COMING UP WITH ALL. DIFFERENT TYPES OF OBSTACLES. OH, YOU WANT US TO STOP SPEAKING. FRENCH IN QUEBEC? DID I NOT. A STREAMING DEALING THAT SAID. THERE WERE CERTAIN DEMANDS THAT.

YOU HAVE TO HAVE FRENCH. LANGUAGE. IT WAS NOT A MAKE OR BREAK PART. OF THE DEAL. WHAT THEY THINK IS, AND THEY. HAVEN'T SPOKEN REALLY FORMALLY. SINCE, THEY THINK THAT CARNEY. WENT BACK AND TALKED TO HIS. PROVINCES, THE PROVINCES SAID. THIS IS A TERRIBLE DEAL. YOU CAN'T GO FOR THIS. WHAT JAMES GRIER SAYS IT'S THE. BEST DEAL WE HAVE GIVEN ANY. OTHER COUNTRY. THEY INITIATED TALKS WITH US. BECAUSE THEY THOUGHT THEY COULD. LAND THIS PLANE. FOR THE PRESIDENT OF THE UNITED. STATES, HE HAS ALREADY DONE 20. TRADE DEALS. THE PREVIOUS ADMINISTRATION. ZERO. OBAMA, TWO.

HE HAS DONE 20 IN A YEAR AND A. HALF. SO CANADA NOW -- CANADA HAS. INCREASED THEIR TRADE WITH OTHER. COUNTRIES UP 56%. BUT, IT'S BEEN SPECULATED THAT. 68% OF THE CANADIAN EXPORTS GO. TO THE U.S. NOW THEY ARE GOING TO BE. TARIFFED. A LOT OF PEOPLE ARE GOING TO. STAY AWAY FROM THEM. THE U.S. DEPENDS ON CANADA FOR. OIL, FERTILIZER AND CEMENT. WE'RE BOTH GOING TO PAY THE. PRICE FOR THIS. >> Lawrence: SO THE MAN AT THE. CENTER OF THE NEGOTIATION IS. JAMES SON GREER. THIS IS WHAT HE HAD TO SAY.

>> CANADA HAS HAD THE BEST DEAL. ANY TIME ANYTHING SATISFIED THE. RULES UNDER THE. U.S.-MEXICO-CANADA AGREEMENT IT. WOULD COME IN DUTY FREE. THEY HAD THAT WE TOLD THEM. THEY CAME TO US. THEY SAID WE WANT A DEAL. I SAID IF YOU ARE INTERESTED IN. A DEAL WE COULD WORK ON THIS. WE COULD TRY TO GIVE YOU THE. BEST DEAL IN THE WORLD ON STEEL, ALUMINUM, AUTOS AND HELP YOU OUT. ON LUMBER. HAND SHAKE ONE EVENING AS YOU. SAID BETWEEN THE PRESIDENT AND. THE PRIME MINISTER. THEY WENT BACK TO OTTAWA. I DON'T KNOW WHAT HAPPENED. BETWEEN THE MEETING THE CALL. WITH THE PRESIDENT AND IN.

OTTAWA. WE KNOW THEY TALKED TO PREMIERS. WE KNOW THERE WAS SOME PRESS. THEN WHEN THEY CAME BACK THEY. WANTED MORE TARIFF RELIEF. >> Lawrence: AS YOU LAID OUT, BRIAN CENTER OF THE NEGOTIATION. LOOKS LIKE THE PRIME MINISTER IN. CANADA, EVERY TIME HE GOES AFTER.

THE PRESIDENT EVEN THOUGH HIS. COUNTRY IS NOT GOING TO BENEFIT. FROM IT HIS POLLING GOES UP. I THINK HE IS DEPENDING ON THE. TEMPORARY POLLING BUMP, BUT. CANADA IS GOING TO BE HURT BY. THIS A LOT MORE SO -- BRIAN IS. RIGHT, WE BOTH WILL BE HURT BUT. THEY WILL BE HURT A LOT MORE. >> Ainsley: I APPRECIATE THE. PRESIDENT'S ATTITUDE ON THIS. HE WROTE ON TRUTH SOCIAL HE SAID. IF THEY WANT OUR MARKET, THEY. MUST BUILD HERE AND STOP. TREATING AMERICA LIKE A PIGGY. BANK. BUY AMERICA, FLY ON AMERICAN.

AIRLINES. ENJOY AMERICA AMERICA FIRST. THANK YOU FOR YOUR ATTENTION TO. THIS MATTER. THE CANADIAN AIRCRAFT. MANUFACTURE BOMBARD DEER PUTTING. AMERICA FIRST. >> RIGHT NOW CARNEY IS. STRENGTHENED BY. THIS EVERYONE IS RALLYING AROUND. THEY DON'T LIKE TRUMP AND DON'T. WANT TO BE THE 51st STATE. THE SUPPORT WILL WEAKEN IF THESE. TARIFFS PRODUCE PRICE INCREASES. BECAUSE THEY ARE TEETERING ON.

RECESSION. UNEMPLOYMENT MUCH HIGHER THAN. OURS OTHER THING THEY ARE ABOUT. TO GET HIT WITH RETALIATORY. STRIKES FROM US. THEY HAVE TO BRACE FROM US CHINA. RETALIATED AND WE HIT THEM. WE WENT BACK AND FORTH THEY. LANDED THAT PLANE. THEY NEVER PUT OUR LIQUOR BACK. ON OUR SHELVES. THEY TOOK IT OFF. THAT HURT OUR GUYS. ONE THING IT DOES DO HURT. FARMERS. CAN'T GET FERTILIZER OUT OF THE. STRAIT OF HORMUZ.