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Are we heading for a trade war with the US?

Could we be heading for war with the United States? A trade war that is?
Last week reports were circulating in the news media of threats of retaliatory actions by Canada if the US doesn't bow to pressure by the Canadian meat industry.
The squabble involves US requirements for Country of Origin labels on meat products. Canadian meat producers had the federal government complain that the requirements were unfair, and also costly.
They took their case to the World Trade Organization who ruled against the US and told them to reverse their position by May 23, 2013. Instead the US talked about imposing even more stringent labeling requirements.
Federal Minister of International Trade Ed Fast, has said that this could result in Canada imposing a variety of fairly stiff tariffs on goods brought into Canada. They would be on many common every day items such as ketchup, orange juice, bread, meat, cheese, some fruits, pasta and chocolate.
One report said the tariff on ketchup would see it double in price!
Why we are threatening these everyday items seems a bit feeble to me. Americans will not care if Canadians have to pay more for ketchup. But cut off their supply of oil or Canadian meats all together and see what reaction we get. They need our meat and oil. We don't need their ketchup, cheese or other every day items.
–Until then,
Ken