AP Business SummaryBrief at 12:48 p.m. EDT

What to know about Canada's escalating trade war with the US as Carney retaliates with tariffs TORONTO (AP) — Canada's retaliatory tariffs on about $20 billion worth of U.S. goods take effect Tuesday, turning its escalating trade war with President Donald Trump into a test watched far beyond the border: Can a country much smaller than the United States stand up to Trump and succeed? Prime Minister Mark Carney has rejected U.S. demands he says could hollow out key Canadian industries and limit the country's independence, while Trump's threats to Canada's sovereignty have rallied the public behind him. Other governments are watching to see what happens after Canada hits back. The measures hit hundreds of American products at rates of 15%, 25% or 50%, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment. Oil prices keep rising and weigh on Wall Street NEW YORK (AP) — U.S. stocks are drifting lower in their return to trading from a three-day weekend after the latest fighting in the war with Iran pushed oil prices higher. The S&P 500 fell 0.4% Tuesday. The Dow Jones Industrial Average dropped 575 points, and the Nasdaq composite slipped 0.1%. They felt pressure after the cost for a barrel of Brent briefly neared $99.50. More expensive oil has worsened worries about inflation and is giving extra heft to a couple reports on inflation that are coming later this week. They will be the final updates the Federal Reserve hears before its meeting on interest rates next week. Cyclospora outbreak followed years of declining FDA foreign inspections WASHINGTON (AP) — The ongoing outbreak of cyclospora tied to iceberg lettuce has raised new concerns about the safety of imported produce and underscores a worrisome trend: The U.S. is conducting fewer inspections to catch contaminated food. International food inspections by the Food and Drug Administration are down about 35% since 2019, the year before the COVID-19 pandemic, according to agency records reviewed by The Associated Press. The pandemic kicked off a wave of retirements and departures among FDA inspectors that continues to this day. But even before COVID the agency had failed to hit its targets for foreign inspections. Recent staffing cuts and reorganizations at the agency suggest the numbers may fall even lower. From the Lockerbie bombing to 9/11: How attacks on flights defined US air travel The aviation security system that travelers encounter at U.S. airports was built layer by layer, often after attacks or attempted attacks exposed new vulnerabilities. Authorities and the aviation industry spent more than a decade trying to address cargo screening and intelligence gaps revealed by the 1988 Pan Am Flight 103 bombing over Lockerbie, Scotland. After 9/11, the federal government restricted airport gate access to ticketed passengers, reinforced cockpit doors and created the TSA to conduct airport security screening. Thwarted plots involving explosives hidden in shoes, drinks and underwear led to additional procedures. Aviation security experts say the system still is evolving, with the goal of addressing weaknesses before attackers can exploit them. Canada will move faster from US reliance as tariffs take effect and Trump response looms TORONTO (AP) — Canadian Prime Minister Mark Carney says Canada would move faster to reduce its economic reliance on the United States as retaliatory tariffs took effect on about $20 billion worth of U.S. goods and the country braced for President Donald Trump's response. The confrontation marks a turning point in Canada's relationship with its much larger neighbor, with Carney arguing that four decades of deeper economic integration had left the country too reliant on the United States. Carney defended the retaliation, saying Canada was matching the latest U.S. measures dollar for dollar while supporting affected workers and industries and accelerating efforts to expand trade with other countries. US hits remaining parts of Iran's aviation sector with sanctions in latest move to isolate Tehran The Trump administration has imposed sanctions on additional elements of Iran's aviation industry. On Tuesday, the Treasury Department targeted more than two dozen commercial and private airlines as well as foreign cargo service providers. The latest actions are part of the Trump administration's Operation Economic Outcast campaign that is aimed at severing 'critical financial lifelines' for the already heavily sanctioned Iranian government. The new penalties focus on the remaining facets of Tehran's beleaguered aviation ecosystem, which Washington has sanctioned for years. The Trump administration accused the 36 entities targeted this week of supporting Iran's efforts to use its aviation sector to move weapons, personnel and illicit cargo. Trump threatens Canadian jetmaker Bombardier, which has an extensive US footprint U.S. President Donald Trump has threatened to ban the sale of aircraft from Canada's Bombardier unless it manufactures planes in the United States. In response, the Canadian maker of private jets noted that many components for its planes, including the wings, are produced in the U.S. and its supply chain that relies heavily on U.S. companies. Bombardier said in a statement that has a supply chain that includes about 2,800 U.S. companies in 47 states. Among other things, wings for its business jets are made in Texas. It said the American aerospace industry is a 'clear winner on trade and exports.' Japan protests as China slaps new measures against its exports of a key chipmaking material BANGKOK (AP) — Japan has protested Chinese controls that will limit its exports of a key chemical used to make computer chips. China imposed the curb on imports of dichlorosilane from Japan, saying its exports of the material have violated anti-dumping regulations, harming China's domestic industry. Beginning Tuesday, companies importing the chemical compound from Japan must provide cash deposits to China's customs at rates of up to 99.2%. Beijing says the measure is provisional as an investigation continues. Japan's chief government spokesman expressed concern, saying Tokyo is studying the potential impact on Japanese companies. Tensions between the two countries have run high since Japanese Prime Minister Sanae Takaichi angered Beijing with comments about Taiwan last year. Hungary expels 10 Russian diplomats as it shifts away from previous pro-Moscow stance BUDAPEST, Hungary (AP) — Hungary has ordered 10 Russian diplomats to leave the country over activities deemed unacceptable, marking a shift from the previous administration's warm ties with Moscow. The Russian ambassador was informed that these diplomats violated the Vienna Convention. Russia plans to respond. The expulsions come months after Prime Minister Peter Magyar took office, promising to tackle corruption and dismantle power structures from his predecessor, Viktor Orbán. The foreign minister emphasized that Hungary seeks to maintain diplomatic contacts with Moscow. European leaders have accused Russia of conducting hybrid warfare campaigns against their countries. China's exports pick up in August, jumping 25% as its trade surplus widens BANGKOK (AP) — China has reported that its exports jumped 25% in August from a year earlier on strong demand for autos and high-tech goods. The data showing China's record trade surplus widening further comes just ahead of U.S. President Donald Trump's planned meeting with Chinese leader Xi Jinping. That's set for late September, though Beijing has not yet confirmed the exact date for the visit. China's global imports climbed 28.2% in August from a year earlier, up from July's 27.5% rise. That led to a $119.1 billion trade surplus for China, widening from $112.5 billion in July. China has weathered disruptions from the Iran war and higher U.S. tariffs better than many other countries.