Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said the U.S. tariff fight with Canada could prolong inflation if the countries’ tense trade relationship continues. The U.S. began imposing 50% tariffs on Canadian products Saturday after negotiators failed to resolve the standoff, while Canadian Prime Minister Mark Carney promised retaliatory tariffs targeting steel, dairy, appliances, agricultural equipment, pulp, paper and electronics from Sept. 8. U.S. Trade Representative Jamieson Greer said no new talks with Canada were planned. Kashkari described Canada as an important U.S. trading partner, with the countries exchanging $880 billion in goods and services in 2025. He said trade and tariff conflicts were among the supply shocks contributing to five years of elevated inflation, alongside the war with Iran and its impact on energy prices. Kashkari said inflationary pressure could fade once the trade relationship reaches a steady state that allows businesses to adjust.