{"id":193105,"date":"2026-09-02T18:16:47","date_gmt":"2026-09-02T18:16:47","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/193105\/"},"modified":"2026-09-02T18:16:47","modified_gmt":"2026-09-02T18:16:47","slug":"canada-wakes-up-to-a-trade-war-and-comes-out-fighting","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/193105\/","title":{"rendered":"Canada wakes up to a trade war, and comes out fighting"},"content":{"rendered":"

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Canadian Prime Minister Mark Carney and Dominic LeBlanc, arrive at a press conference in Ottawa, Ontario, on August 22, 2026 after trade talks with the US collapsed.DAVE CHAN\/AFP\/Getty Images<\/p>\n

08\/22\/26 19:45Premiers present united front, but divisions emerge on next steps<\/p>\n

\u2013 Jeff Gray, Mike Hager, Carrie Tait, Bill Curry<\/p>\n

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Canada’s premiers lined up behind the Prime Minister’s decision to walk away from a trade deal with Washington, but differences quickly surfaced over retaliatory tariffs and how Canada should respond to Donald Trump.Darren Calabrese\/The Canadian Press<\/p>\n

Canada\u2019s premiers attempted to present a united front behind Prime Minister Mark Carney\u2019s decision to walk away from U.S. trade talks \u2013 but some divisions were already emerging among the members of \u201cTeam Canada\u201d over what to do next.<\/p>\n

An array of premiers, including Ontario\u2019s Doug Ford, B.C.\u2019s David Eby, Manitoba\u2019s Wab Kinew and Saskatchewan\u2019s Scott Moe, came out Saturday to say they backed Mr. Carney both for his move to scupper what they agreed was a bad deal and to push back on the U.S. with retaliatory tariffs. Mr. Kinew called the U.S. tariffs \u201cimmoral and unjustified.\u201d<\/p>\n

The Premiers met with Mr. Carney via a conference call Saturday afternoon to discuss the retaliatory tariffs and mitigation measures or financial support for affected sectors, the details of which are supposed to be rolled out in the coming days.<\/p>\n

But even in the face of the trade crisis, some differences between premiers, and between provinces and the Prime Minister, were clear.<\/p>\n

Read the full story here.<\/a> <\/p>\n

08\/22\/26 19:04Opinion: An offer the Prime Minister had to refuse<\/p>\n

\u2013 Campbell Clark<\/p>\n

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Prime Minister Mark Carney speaks with the news media after he suspended trade negotiations with the U.S., in Ottawa.Chris Tanouye\/Reuters<\/p>\n

It was striking how much Mark Carney\u2019s crisis press conference on Saturday looked like the crisis press conference of 17 months ago.<\/p>\n

He wore a different necktie but a similar suit and strode into the same room to stand in front of the same backdrop of wood panelling and Canadian flags to deliver the same message: Canada would stand up to a U.S. tariff attack.<\/p>\n

The first time, on March 27, 2025, Mr. Carney had come off the election campaign trail to vow to retaliate against U.S. President Donald Trump\u2019s move to impose tariffs on Canadian autos and what the Prime Minister called an attempt \u201cto break us so that America can own us.\u201d<\/p>\n

On Saturday, he vowed \u201cdollar-for-dollar\u201d retaliation against a whole new raft of steep U.S. tariffs imposed after the late-night breakdown of talks \u2013 intended, Mr. Carney said, to \u201churt and divide us.\u201d<\/p>\n

And here we are again: On the edge of full-blown, economically devastating trade war.<\/p>\n

Read the full column here.<\/a><\/p>\n

08\/22\/26 18:20More U.S. politicians lash out at Trump\u2019s \u2018chaotic\u2019 trade war <\/p>\n

\u2013 Globe Staff<\/p>\n

Other U.S. politicians continue to weigh in on the collapse of the Canada-U.S. trade talks. <\/p>\n

Maine Senator Susan Collins said \u201con-again and off-again trade talks\u201d lead to higher costs, risk, and uncertainty for Maine businesses.<\/p>\n

The on-again\/off-again trade talks between the U.S. and Canada lead to higher costs, risk, and uncertainty for Maine businesses. If the Administration proceeds with these tariffs, they will increase costs for Maine families, as most businesses will have no choice but to pass on\u2026<\/p>\n

\u2014 Sen. Susan Collins (@SenatorCollins) August 22, 2026<\/a> <\/p>\n

Maine\u2019s Governor Janet Mills said: \u201cMaine has had enough of this unending trade whiplash.\u201d<\/p>\n

The President\u2019s latest escalation of his foolish trade war with Canada will create more uncertainty for Maine businesses, push costs even higher for Maine families, and further strain our bond with our closest trading partner. Maine has had enough of this unending trade whiplash.<\/p>\n

\u2014 Governor Janet Mills (@GovJanetMills) August 22, 2026<\/a> <\/p>\n

Michigan Governor Gretchen Whitmer said: \u201cMichiganders are uniquely impacted by DC Republicans\u2019 ongoing, chaotic tariff wars with Canada. These tariffs act as a tax hike on Michigan families and businesses by raising prices at the grocery store and the gas pump.\u201d<\/p>\n

Michiganders are uniquely impacted by DC Republicans\u2019 ongoing, chaotic tariff wars with Canada. These tariffs act as a tax hike on Michigan families and businesses by raising prices at the grocery store and the gas pump.<\/p>\n

\u2014 Governor Gretchen Whitmer (@GovWhitmer) August 22, 2026<\/a> 08\/22\/26 17:50Business leaders were dealing with uncertainty. Now comes volatility <\/p>\n

\u2013 Jameson Berkow, Sophia Bertuzzi and Olivia Grandy<\/p>\n

Canadian business leaders have been left in a precarious state of limbo after an 11th-hour collapse in trade talks with the United States also eliminated hopes for an end to the uncertainty that has long paralyzed their investment decisions. <\/p>\n

U.S. President Donald Trump\u2019s latest round of tariffs primarily target Canada\u2019s manufacturing sector. Dennis Darby, chief executive officer of industry group Canadian Manufacturers and Exporters and a member of Mr. Carney\u2019s advisory committee on Canada-U.S. economic relations, said the Prime Minister\u2019s language suggested \u201che is setting up for the long haul.\u201d <\/p>\n

\u201cOur preference is for them to quickly get back to the table, but I don\u2019t think that is going to happen any time soon,\u201d Mr. Darby said in an interview on Saturday. <\/p>\n

\u201cThe bigger problem for us is that in the long run, if this back and forth persists, it erodes the confidence companies have to make investment decisions.\u201d<\/p>\n

\u201cNot only has it been uncertain, but now it might become even more volatile,\u201d he said. <\/p>\n

Read the full reaction from the business community here.<\/a><\/p>\n

08\/22\/26 17:32Collapse of trade talks raises stakes for inaugural Canada Investment Summit<\/p>\n

\u2013 James Bradshaw <\/p>\n

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The inaugural Canada Investment Summit, co-hosted by Mark Carney, is on track to welcome executives from nearly 100 global investment organizations in an effort to boost investment in Canadian businesses and infrastructure.Jeff McIntosh\/The Canadian Press<\/p>\n

The breakdown of trade talks raises the stakes for the Canada Investment Summit<\/a>, which will draw an influential finance crowd in charge of about $120-trillion to Toronto in September \u2013 days after Canada\u2019s retaliatory tariffs against the U.S. are scheduled to kick in. <\/p>\n

Prime Minister Carney said Saturday that summit attendees will \u201cfind a Canadian economy that has never been more connected or more ambitious.\u201d Expect him to press CEOs to look to Canada for diversification as the U.S. administration acts unpredictably. <\/p>\n

Several senior investors I called today said the trade tensions help prove that point, and don\u2019t think most global investors will be scared off. The summit was conceived precisely because uncertainty over tariffs was high. But visitors will surely have tough questions about the fallout, especially if tensions escalate.<\/p>\n

08\/22\/26 17:23It seems the U.S. is out to destroy Canada\u2019s auto industry, professor says<\/p>\n

\u2013 Sophia Bertuzzi<\/p>\n

The current tariffs and new trade uncertainty will continue to hurt investment in the auto industry, said Peter Frise, professor of mechanical and automotive engineering at the University of Windsor, in an interview. <\/p>\n

\u201cThis cannot be seen as a good development.\u201d Frise said. It\u2019s specifically concerning as the auto industry is one that requires ongoing investment every year, he added. <\/p>\n

Frise said that in the negotiations, lowering the tariff rate wasn\u2019t enough, and the U.S. wasn\u2019t going to lower it to the point where Canada\u2019s industry could be sustainable. <\/p>\n

\u201cThey know it. I mean, it appears that their goal is to destroy our industry.\u201d<\/p>\n

08\/22\/26 17:18Opinion: The U.S.\u2019s deal was no deal at all<\/p>\n

\u2013 Steve Verheul<\/p>\n

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A truck passes over the Peace Bridge from Buffalo, New York, into Canada on August 18.COLE BURSTON\/AFP\/Getty Images<\/p>\n

The breakdown in Canada-U.S. negotiations has left Canada in a difficult position, with uncertain and challenging times ahead. But agreeing to the deal the U.S. was offering on Friday night would have been worse.<\/p>\n

Accepting tariffs<\/a> against key Canadian exports in an integrated North American economy and against the fundamental obligations of our existing free trade agreement would have meant crossing a threshold that would be difficult to unwind. Canadian autos, which faced a reported 15-per-cent tariff<\/a> under the terms of the proposed deal without an exemption for Canadian content, would have faced the most severe consequences. But that illustrates obstacles that would have also been faced by others.<\/p>\n

More broadly, signing a deal heavily slanted in the U.S.\u2019s direction would have serious implications for Canada\u2019s long-term economic position and how we attract investment. On top of this, according to U.S. industry sources, part of the deal on the table was that Canada would match U.S. tariff levels on key products against all trading partners outside North America, including tariff-rate quotas on free-trade partners, a breach of our free trade agreements. That would take us down the path of facing the duelling pressures of a North American economy on terms slanted in the U.S.\u2019s direction, and with our options to find alternative markets constrained.<\/p>\n

Read the rest of the column here<\/a>.<\/p>\n

08\/22\/26 16:55Canada had to walk away, but this going to hurt, Smith says<\/p>\n

\u2013 Carrie Tait<\/p>\n

Alberta Premier Danielle Smith on Saturday cautioned against Canada applying retaliatory tariffs as the country\u2019s trade war with the United States escalates, but stopped short of demanding Prime Minister Mark Carney reject the option.<\/p>\n

\u201cI know, emotionally, it feels good to retaliate. I get that. But let\u2019s remember what happens when we retaliate,\u201d Smith said during her regular talk radio appearance.<\/p>\n

\u201cWhen retaliation happens, it means everybody who is buying products from the United States is now going to face upwards to 50 per cent tariffs. And they are talking about that being on steel, on dairy, on appliances, on agriculture equipment.\u201d<\/p>\n

The Premier\u2019s political base is in rural Alberta, where she is popular with farmers, ranchers and those working in the energy industry. She said she is especially worried about tariffs on agricultural machinery.<\/p>\n

\u201cWe shouldn\u2019t be cheering if our farmers have to pay 50 per cent more for all the equipment that they need to produce our food,\u201d she said. \u201cThat is not a success.\u201d<\/p>\n

Smith, however, supported Carney\u2019s decision to walk away from the negotiating table.<\/p>\n

\u201cThere were just a couple of key demands from the United States that made it really untenable for us to sign off,\u201d she said. \u201cIt would have been too painful.\u201d<\/p>\n

Read the full story here.<\/a><\/p>\n

08\/22\/26 16:47The hits keep coming for the forestry industry, B.C. expert says<\/p>\n

\u2013 Sophia Bertuzzi<\/p>\n

Ongoing duties on softwoods lumber and wood products will continue to hit B.C. the hardest, the country\u2019s leading producer of softwood lumber. Canada exported nearly 60 per cent of its softwood lumber to the U.S. in 2024 \u2013 with B.C. accounting for more than 30 per cent of those exports \u2013 according to Statistics Canada. <\/p>\n

The sector has been hurt by more than four decades of cross-border trade disputes and aggressive U.S. protectionist policies.<\/p>\n

\u201cWe\u2019ve had the consistent U.S. trade action against forestry that clearly has been to benefit the U.S. sector at the expense of U.S. consumers, and politically, for a variety of reasons, there\u2019s not been much of a pushback,\u201d Harry Nelson, professor in the faculty of forestry at UBC, said.<\/p>\n

Now, additional paper and wood products targeted by the 50 per cent Section 338 tariffs are \u201cgoing to be hammered,\u201d he said. Previously, downstream industries of the forestry value chain helped \u201ccushion and support the overall economics of the sector.\u201d<\/p>\n

A comprehensive trade deal around softwood lumber is the only way Nelson sees for the sector to reach \u201csome kind of peace.\u201d<\/p>\n

08\/22\/26 16:36B.C. will only place American alcohol on shelves if U.S. removes lumber tariffs, Eby says <\/p>\n

\u2013 Mike Hager<\/p>\n

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British Columbia Premier David Eby responds after Canada’s Prime Minister Mark Carney suspended trade negotiations with the United States, in Vancouver, British Columbia, Canada, August 22, 2026.Jennifer Gauthier\/Reuters<\/p>\n

B.C. Premier David Eby says he fully supports Ottawa \u201cstanding up to a bully\u201d by walking away from tariff negotiations with U.S. President Donald Trump\u2019s administration and his provincial government is already identifying ways to help Canada inflict economic pain on its largest trading partner.<\/p>\n

At a press conference in Vancouver on Saturday, Eby told reporters that the U.S.\u2019s demands for a say in who Canada trades with was one of several dealbreakers proposed by the Americans in the talks, which also had no solutions to end the punitive tariffs on logs and timber products exported south.<\/p>\n

Eby said the collapse of talks will no doubt lead to economic pain and job losses in his province, but retaliating is now necessary to send a message to Trump that the U.S.-Canada trade relationship cannot be taken for granted.<\/p>\n

\u201cA bad deal runs the risk of entrenching a set of tariffs and charges and capitulations that will be very hard to undo in the long term,\u201d he said.<\/p>\n

He added that he would only direct government liquor stores to put American alcohol back on their shelves once the U.S. removes its tariffs on Canadian lumber, which he noted are more punitive than those placed on Russian timber.<\/p>\n

08\/22\/26 15:50No end to uncertainty surrounding domestic auto industry, expert says<\/p>\n

\u2013 Sophia Bertuzzi<\/p>\n

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Honda employees work along the vehicle assembly line in Alliston, Ont., on April 25, 2024.Nathan Denette\/The Canadian Press<\/p>\n

Now that an interim trade deal is off the table, Greig Mordue, an engineering professor at McMaster University and a former general manager of Toyota in Canada, said automakers, industry actors and policymakers will need to determine if the current tariff rate is sustainable for at least the next two years.<\/p>\n

The Globe and Mail reported that the proposed deal would have reduced U.S. tariffs on the American content of Canadian-made cars to 15 per cent from 25 per cent, without the same exemption for domestic and Mexican input that Canada sought. <\/p>\n

The U.S. content in a car assembled in Canada varies but is about 50 per cent, meaning those autos would have been hit with an effective tariff rate of 6 to 8 per cent. Mordue said that even that reduced effective rate wasn\u2019t a sustainable long-term resolution \u2013 especially if it meant that was the final agreement.<\/p>\n

\u201cIncrementally, but slowly but surely, it would lead to a hollowing out of the Canadian industry,\u201d he said.<\/p>\n

With an ongoing trade war and tariff rate unchanged, there might be a notion on both sides of the border that this discussion isn\u2019t over, he added.<\/p>\n

\u201cWe may be able to survive an effective rate of 12 and a half percent if we see some sliver of hope that 12.5 will get a lot closer to zero per cent following some further negotiation.\u201d<\/p>\n

In the absence of certainty, there\u2019s also the risk automakers will place investments south of the border, Mordue said. We won\u2019t see a quick announcement over the next few days about what these companies will do, he said, but they will \u201cslowly, incrementally make adjustments, and we\u2019ll see what happens.\u201d<\/p>\n

08\/22\/26 15:34Watch: Manitoba Premier Wab Kinew comments on suspension of Canada\u2013U.S. trade talks08\/22\/26 15:25U.S. politicians share messages of support for Canada, disapproval of breakdown of trade talks <\/p>\n

\u2013 Globe staff <\/p>\n

Several high-profile U.S. politicians have expressed their deep concern over the breakdown of trade talks between Canada and the United States, posting a range of statements \u2013 including messages of support for Canada \u2013 on their social media pages. <\/p>\n

California Governor Gavin Newsom dropped an explicative when reacting to the deal, saying Canada was the U.S.\u2019s \u201ccritical trading partner.\u201d<\/p>\n

Our closest ally. Our critical trading partner.<\/p>\n

And Trump is hitting Canada with 50% tariffs.<\/p>\n

What the actual fuck are we doing?<\/p>\n

\u2014 Gavin Newsom (@GavinNewsom) August 22, 2026<\/a> <\/p>\n

New York Senator Chuck Schumer said that Donald Trump\u2019s \u201cchaotic\u201d trade war is also affecting the cost of living for American families. <\/p>\n

\u201cThis nonsense with Canada should have never gone into effect. It must end now.\u201d <\/p>\n

New York Governor Kathy Hochul said: \u201cNeedlessly picking fights with our allies and raising prices here at home. That\u2019s Trump\u2019s economic policy in a nutshell.\u201d<\/p>\n

Washington State Senator Patty Murray voiced her disapproval of U.S. President Donald Trump\u2019s tariffs alongside \u201cno trade war\u201d in capitals. <\/p>\n

\u201cTrump owes our friends and neighbors an apology for nearly 2 years of his boorish insults and jeers. Canada IS Washington state\u2019s biggest trading partner and our country\u2019s closest ally.\u201d<\/p>\n

Minnesota Senator Amy Klobuchar also expressed her disappointment, saying that Canada was Minnesota\u2019s number one trading partner. <\/p>\n

\u201cMinnesotans are paying for Trump\u2019s chaos.\u201d<\/p>\n

New Trump tariffs just went into effect. Now it\u2019s 50% tariffs on Canadian goods.<\/p>\n

That means higher costs for small businesses, farmers, and all Minnesota families.<\/p>\n

Canada is Minnesota\u2019s #1 trading partner. Minnesotans are paying for Trump\u2019s chaos.<\/p>\n

\u2014 Amy Klobuchar (@amyklobuchar) August 22, 2026<\/a> 08\/22\/26 15:22Calgary Chamber of Commerce stands behind no deal, but concerned about consequences<\/p>\n

\u2013 Carrie Tait<\/p>\n

The Calgary Chamber of Commerce, representing the business community at the heart of Alberta\u2019s oil patch, threw its weight behind Prime Minister Mark Carney after trade negotiations with the United States collapsed.<\/p>\n

\u201cWe stand firm that no deal is better than a bad deal,\u201d Deborah Yedlin, the Chamber\u2019s chief executive, said in a statement Saturday. \u201cWe are encouraged by Canada\u2019s unwavering commitment to our sovereignty, trade opportunities, and economic competitiveness.<\/p>\n

\u201cCanada has the resources, talent and global partnerships we need to be economically strong \u2013 and the collaboration between governments and industry in recent years will continue to buoy our economic prospects.\u201d<\/p>\n

But the Chamber is \u201cconcerned about follow-on effects of the deterioration\u201d of the negotiations between Canada and the United States, Yedlin said. She acknowledged the \u201cthe severe impact that both American tariffs and Canada\u2019s retaliatory tariffs will have on the economy,\u201d estimating that they will affect roughly 100,000 jobs across the country.<\/p>\n

She encouraged Ottawa to prioritize small and medium-size businesses with \u201cshort-term\u201d relief programs.<\/p>\n

\u201cOver the next two weeks, we encourage the federal government to closely consult provinces and businesses to minimize the unintended consequences of retaliatory tariffs,\u201d she said.<\/p>\n

08\/22\/26 15:18Unifor president says Canada has \u2018to push back as hard as we can\u2019<\/p>\n

\u2013 Jeff Gray<\/p>\n

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Unifor National President Lana Payne speaks to media in Toronto on June 22.Sammy Kogan\/The Canadian Press<\/p>\n

Lana Payne, national president of Unifor, Canada\u2019s largest private-sector union, said Saturday that Prime Minister Mark Carney had no choice but to walk away from the trade talks.<\/p>\n

The union leader, whose organization represents auto workers and those across many other sectors, said the U.S. tariff numbers circulated this week, which included a lower 15 per cent levy on cars but with an exemption that applied only to U.S. parts, were unacceptable and unsustainable.<\/p>\n

Payne said she believed it was inevitable that Canada would have to abandon the talks, given the series of concessions demanded by the U.S.<\/p>\n

\u201cWe are now at a place where we have to draw this line in the sand,\u201d Payne told reporters in Toronto. \u201cWe\u2019re going to have to push back as hard as we can, as strategically as we can, and hopefully in the weeks and months ahead we can get to a place where we can put some of this back together.\u201d<\/p>\n

She would not say what level of tariff she would be willing to live with \u2013 just that it had to be as low as possible. She said it was wrong to agree to \u201clocking in tariffs that would have made it very difficult for some of these sectors to be viable or competitive.\u201d<\/p>\n

Canada has a more integrated economy with the U.S. and any trade deal cannot be compared to the tariffs agreed to by other countries, she said. <\/p>\n

Payne also said governments needed to step in and mitigate the job losses set to come from the existing tariffs and the new round of U.S. levies triggered by the collapse of the talks.<\/p>\n

08\/22\/26 15:05Watch: B.C. Premier David Eby on the suspension of Canada\u2013U.S. trade talks08\/22\/26 14:40Aluminum association head says Canada decided \u2018not to accept the unacceptable\u2019<\/p>\n

\u2013 Olivia Grandy <\/p>\n

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Workers inspect sheets of stainless steel after being pressed from coils, at Magna Stainless and Aluminum in Montreal.Christopher Katsarov\/The Canadian Press<\/p>\n

Aluminum Association of Canada CEO Jean Simard said that Canada made the right decision by pulling out of trade negotiations with the U.S. His industry, which has been subject to 50 per cent tariffs since June 2025<\/a>, still makes up more than half of the U.S.\u2019 aluminum imports. <\/p>\n

\u201cOur plants remain in full operation. We\u2019re producing at 95 per cent capacity. We\u2019re shipping. There hasn\u2019t been any curtailment, and no job losses because the market needs the metal,\u201d Simard said in an interview. He is also on the Canada-U.S. advisory committee<\/a>, chaired by federal Trade Minister Dominic LeBlanc.<\/p>\n

On negotiations, Simard said Canada\u2019s move was \u201clike deciding to not accept the unacceptable, so that you don\u2019t have to deliver the undeliverable at the other end.\u201d<\/p>\n

Instead, he believes the aluminum tariffs \u201cwill keep hurting the U.S. manufacturing sector and the consumers because the prices that are very high now will stay high.\u201d<\/p>\n

08\/22\/26 14:21Opinion: Canada didn\u2019t chicken out. We did the right thing<\/p>\n

– Patrick Leblond<\/p>\n

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Trucks pass over the Peace Bridge between Canada and the United States on August 18.COLE BURSTON\/AFP\/Getty Images<\/p>\n

The best way to understand trade negotiations between Canada and the U.S. is by viewing them as a game of chicken.<\/p>\n

Such a game is best understood as two cars running toward each other at full speed. Whichever driver loses their nerve and swerves first to avoid a head-on collision loses the game. Of course, if nobody swerves, both drivers are hurt, but they retain their reputation.<\/p>\n

So, in the case of Canada-U.S. trade negotiations, it is Prime Minister Mark Carney<\/a> and President Donald Trump<\/a> speeding toward each other.<\/p>\n

Read the rest of the piece here<\/a>.<\/p>\n

08\/22\/26 14:09Business Council of Canada says no deal is better than a bad deal<\/p>\n

– Sophia Bertuzzi<\/p>\n

Goldy Hyder, president and CEO of the Business Council of Canada, said the council remains hopeful that Canada and the United States will eventually find common ground \u2013 but for now the focus must be on strengthening Canada\u2019s economy and supporting those directly impacted by U.S. tariffs.<\/p>\n

\u201cCanadian business leaders have long recognized that no deal is better than a bad deal,\u201d he said in a statement. <\/p>\n

\u201cThis is a time for all Canadians to stand united. History has shown us that when we all work together, we can achieve great things. We stand ready to do so.\u201d<\/p>\n

08\/22\/26 14:05Steel workers union stands behind Carney<\/p>\n

– Olivia Grandy<\/p>\n

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A worker moves a steel coil at the Infasco steel fastener factory in Marieville, Quebec, Canada, August 12, 2026. REUTERS\/Roger LemoyneROGER LEMOYNE\/Reuters<\/p>\n

The union representing more than 225,000 workers in Canada\u2019s steel sector is standing behind Mark Carney\u2019s decision to call off trade talks with the U.S., despite struggles on the road ahead, said Marty Warren, United Steelworkers national director for Canada. <\/p>\n

Canadian steel has been hit with 50 per cent tariffs<\/a> since June 2025, and Canada\u2019s decision to walk away from negotiations means there is no relief in sight. <\/p>\n

\u201cWe\u2019ve been getting by \u2013 not quite life support,\u201d Warren said in an interview. <\/p>\n

\u201cThe way we will help the steel industry survive in Canada is to take back our domestic market,\u201d he said, adding that the push for major projects could provide relief. Yet, he said, \u201cit\u2019s vital that we get a decent trade agreement.\u201d<\/p>\n

The previously proposed deal, which The Globe reported would have involved a four-million-tonne quota on exports to the U.S., under a 25 per cent tariff<\/a>, was not a sustainable option for the industry, Warren said. <\/p>\n

\u201cThis isn\u2019t a war as in guns and boots on the ground, but this is an economic war, and it\u2019s up to our generation to stand up for future generations and not lose control of our sovereignty and our Canadian economy, and that\u2019s what was at risk.\u201d<\/p>\n

08\/22\/26 13:59Disagreement over truck tariffs helped sink the deal, Carney said<\/p>\n

– Mark Rendell<\/p>\n

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Cars drive past the Ford Oakville Assembly plant in Oakville, Ont. on Friday April 5, 2024.Frank Gunn\/The Canadian Press<\/p>\n

The most difficult part of the trade negotiations revolved around the auto sector. And in the end, U.S. tariffs on mid- and heavy-duty trucks played a major part in sinking the deal, Prime Minister Mark Carney said. <\/p>\n

As part of the prospective deal, the U.S. had offered to lower tariffs on Canadian autos to 15 per cent from 25 per cent, but at the last minute the Americans made clear this tariff relief would only apply to light vehicles, not to mid- and heavy-duty trucks.<\/p>\n

That was \u201ca big change,\u201d Carney said. \u201cAnd with respect to Ford\u2019s new plant, for example, in Oakville, which is F350s [trucks], 450s, 550s, they would have been excluded. GM Silverado; same thing, would have been excluded from that. No rationale, just for exclusion.\u201d<\/p>\n

A source with knowledge of the negotiations said the Canadian side only became aware of the truck exclusion late in the negotiating process. Without tariff relief for trucks, Ford Motor Co.\u2019s decision to invest $5-billion to retool its plant in Oakville, Ont. to produce F-Series trucks would be called into question, the source said. General Motor Co.\u2019s plant in Oshawa, Ont., which produces Chevrolet Silverado trucks, would have also struggled. <\/p>\n

The two sides also disagreed about tariff treatment for Canadian parts and metals in vehicles, Carney said. Under the current 25-per-cent Sec. 232 tariff on Canadian automobiles, there is a carve-out for the value of U.S. content in the vehicles and Ottawa wanted this extended to Canadian content as well. <\/p>\n

A 15-per-cent tariff with only a U.S. content carve-out would have brought the average effective tariff rate on Canadian cars down to about 7.5 per cent, which is still too high to guarantee the long-term sustainability of the Canadian auto industry, according to auto-sector experts. If a Canadian parts carve-out was added, the average effective tariff rate would have likely fallen to around 5 per cent. <\/p>\n

The U.S. was \u201ceffectively moving into a series of terms that would have made [Canadian] production more uneconomic over time,\u201d Carney said.<\/p>\n

08\/22\/26 13:36Watch: Carney announces retaliatory tariffs on various U.S. sectors<\/p>\n

– Reuters<\/p>\n

Prime Minister Mark Carney announced \u201cdollar for dollar\u201d retaliatory tariffs on imports from the U.S. Saturday morning. New 50-per-cent tariffs were imposed by the U.S. after Canada withdrew from trade negotiations late Friday night.<\/p>\n

Reuters<\/p>\n

08\/22\/26 13:27With Quebec getting hit hard, Fr\u00e9chette announces programs for businesses<\/p>\n

\u2013 Ryan MacDonald<\/p>\n

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Quebec Premier Christine Fr\u00e9chette speaks during a news conference in response to the breakdown of Canada-US trade negotiations, in MontrealGraham Hughes\/The Canadian Press<\/p>\n

Quebec Premier Christine Fr\u00e9chette says the escalation of the trade war with the U.S. will have a substantial impact on the Quebec economy and warned that jobs will be lost. Quebec, British Columbia and Ontario will be hardest hit by the U.S.\u2019s new round of tariffs.<\/p>\n

At a press conference, she announced two programs for businesses. The first is aimed at companies with revenues exceeding $2 million dollars, and the second is an emergency aid program for small and medium-sized enterprises. <\/p>\n

She also said the province will continue to keep U.S. alcohol off shelves and will maintain procurement policies that exclude U.S. companies. <\/p>\n

Interestingly, she also shed more light on what Prime Minister Mark Carney said earlier around protecting the French language in Canada. American negotiators, she suggested, wanted to limit or eliminate French-language labelling on some products. <\/p>\n

The premier is about to launch an election campaign, one that is likely to take place in the shadow of Donald Trump.<\/p>\n

08\/22\/26 13:23U.S.-Canada relationship \u2018in the dumps\u2019: trade lawyer <\/p>\n

\u2013 Eric Reguly <\/p>\n

International trade lawyer Lawrence Heman of Toronto\u2019s Herman & Associates has been saying for months that Canada-U.S. trade relations can only deteriorate. He said so again on Saturday, shortly after the trade negotiations between the two countries collapsed, and he thinks the U.S. could suffer as much as Canada as the tariff wars escalate. <\/p>\n

\u201cGiven insulting statements by JD Vance, Jamieson Greer and Howard Lutnick, it\u2019s clear that they don\u2019t have any regard or respect for Canada,\u201d he said. \u201cThey seem inclined to continue to cause as much pain as possible, even if a lot of that pain reverberates on U.S. business. The relationship is in the dumps.\u201d<\/p>\n

08\/22\/26 13:22Ford to push for industry aid in call with PM, Canada\u2019s premiers<\/p>\n

\u2013 Jeff Gray<\/p>\n

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Ontario premier Doug Ford attends a meeting with fellow premiers at the Council of the Federation meeting in Charlottetown on Wednesday July 22, 2026.Darren Calabrese\/The Canadian Press<\/p>\n

Speaking to reporters in Toronto, Ontario Premier Doug Ford called the aborted U.S. trade agreement a \u201cterrible deal\u201d that failed to alleviate the tariffs on his province\u2019s auto and steel sectors, and that he opposed the proposal even as it was outlined on Wednesday, two days before the plug was finally pulled on the talks.<\/p>\n

Ford said he was on the phone with Prime Minister Mark Carney all day Friday, and spoke with him around 11:45 p.m., just before Carney announced the talks had failed.<\/p>\n

\u201cI\u2019ve always said we need to fight these tariffs tariff-to-tariff, dollar-to-dollar, and I\u2019m glad he didn\u2019t sign that deal because it was a bad deal.\u201d<\/p>\n

On today\u2019s scheduled 1:30 p.m. ET call with the other premiers and the Prime Minister, Ford said he would discuss needed aid for the steel and auto sectors, which he said was discussed Friday with Carney as well. <\/p>\n

But Ford said \u201cfurther discussions\u201d were needed on his demands, outlined in a letter to Carney that was released Saturday, for relief from the industrial carbon tax and relaxed tailpipe emissions rules for the auto sector. Ford also said he would be meeting with steel industry CEOs on Monday in Hamilton.<\/p>\n

Ford said the President keeps changing the terms of the deal: \u201cPresident Trump is the type of person that would steal your lunch money the first day. He\u2019d steal the toque off your head the second day. And the third day, he\u2019d steal your running shoes. He is not to be trusted whatsoever.\u201d<\/p>\n

08\/22\/26 13:16Green Party\u2019s leader says strategic response needs to \u2018cause pain\u2019 <\/p>\n

\u2013 Marie Woolf<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Green Party Leader Elizabeth May speaks in the Foyer of the House of Commons on Parliament Hill in Ottawa, on Wednesday, June 3, 2026Spencer Colby\/The Canadian Press<\/p>\n

Green party leader Elizabeth May said after listening to Mark Carney\u2019s remarks that she supported his actions but also called for a strategic response that would hit Donald Trump hard.<\/p>\n

This includes holding back resources required by industries based in districts the U.S. President needs to win in upcoming midterm elections.<\/p>\n

\u201cWhen you are in a boxing ring with a bully, a bully with an economy roughly 12 times the size of Canada, our pushback has to be targeted to where it hits that bully in ways that cause pain,\u201d she said. <\/p>\n

She also called for strategic changes to reduce reliance on the U.S. and support economic sovereignty. <\/p>\n

\u201cIt\u2019s time to go beyond an eye for an eye to a real shift in our subservient relationship with the USA,\u201d she told the Globe and Mail.<\/p>\n

08\/22\/26 13:08Canadian forestry industry will continue to face severe pain<\/p>\n

\u2013 Sophia Bertuzzi<\/p>\n

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Alberta\u2019s Northland softwood lumber, a Canadian product targeted by US President Donald Trump\u2019s tariffs, near Fort McMurray, Alberta, Canada, on May 6, 2026.DAPHNE LEMELIN\/AFP\/Getty Images<\/p>\n

The Canadian forestry sector was looking for immediate relief with a trade deal.<\/p>\n

With steep duties on softwood lumber, upholstered wooden furniture and kitchen cabinets, the industry has been battered by the trade war. Now, the new Section 338 tariffs \u2013 set at 50 per cent \u2013 will target billions of wood and paper products.<\/p>\n

\u201cWe\u2019re very disappointed. This is going to be very difficult for our sector,\u201d Derek Nighbor, president and chief executive officer of Forest Products Association of Canada said. <\/p>\n

Softwood lumber already faces a 10 per cent levy from Section 232 tariffs in addition to a cumulative 35 per cent anti-dumping and countervailing duty.<\/p>\n

Nighbor said the sector is \u201cvery much collateral damage\u201d in the trade dispute, but the focus now will be working with the government to support impacted businesses and employees, improving domestic competitiveness, and reducing barriers and costs in the sector.<\/p>\n

\u201cHow can we work with government to soften the blow to our sector and its people? That\u2019s our big focus right now,\u201d he said. <\/p>\n

08\/22\/26 12:46Canada will retaliate with trade measures on U.S. on Sept. 8, Carney says<\/p>\n

\u2013 Bill Curry and Marie Woolf<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette listen as Prime Minister Mark Carney speaks about Canada\u2019s response to new U.S. tariffs.PATRICK DOYLE\/The Canadian Press<\/p>\n

Prime Minister Mark Carney said his team walked away from trade negotiations Friday after the American side made unacceptable requests that would have infringed on Canadian sovereignty.<\/p>\n

Speaking with reporters Saturday morning on Parliament Hill, Mr. Carney offered several examples of U.S. demands that Canada could not accept, including the fine print related to potential agreements on steel, aluminum and autos, and language that he said would have restricted Canada\u2019s trade negotiations with other countries.<\/p>\n

\u201cThere were some things we wouldn\u2019t do. We were not prepared to compromise Canada\u2019s sovereignty or to undermine key industries,\u201d he said. \u201cIn short, they asked too much, and they offered too little.\u201d<\/p>\n

The Prime Minister said Canada is preparing retaliatory measures, which would be revealed in the coming days and will take effect Sept. 8.<\/p>\n

Read the rest of the story here.<\/a><\/p>\n

08\/22\/26 12:25Carney: U.S. threats to Canadian culture was a \u2018power play\u2019 <\/p>\n

\u2013 Marie Woolf<\/p>\n

Carney said the U.S. had tried to influence Canada\u2019s language protections for French and Quebec culture and the cultural supports offered here as part of the trade talks. <\/p>\n

The U.S. has previously raised concerns about Canada\u2019s online streaming act which makes foreign streaming companies, including American giants Apple, Netflix and Amazon, financially support Canadian cultural industries such as film, TV and music. The bill includes mandatory supports for French Canadian culture. <\/p>\n

Experts have raised concerns this week that as part of the talks Canada would give up sovereignty over digital policy. <\/p>\n

Asked about why the U.S. was trying to get more control, Carney said: \u201cIt\u2019s a power play and it becomes a question of sovereignty.\u201d<\/p>\n

08\/22\/26 12:21Retaliatory tariffs could pose upside risk to inflation, headwind for loonie<\/p>\n

\u2013 Sophia Bertuzzi<\/p>\n

Depending on scale, Ottawa\u2019s retaliatory tariffs could stoke imported inflation, wrote Karl Schamotta, chief market strategist at Corpay in a research note.<\/p>\n

The Bank of Canada is likely to judge that the risks tilt towards weaker growth rather than higher prices, Schamotta wrote, as the economy is still growing well below potential.<\/p>\n

\u201cWe expect investors to further downgrade their expectations for monetary tightening. At the margin, this shift in expected rate differentials should represent a headwind for the loonie.\u201d Schamotta wrote.<\/p>\n

Ahead of the deadline, the Canadian dollar rallied after investors grew hopeful of a trade deal and the U.S. dollar dropped to a three-month low following the U.S. Treasury\u2019s decision to double long-term bond buybacks, sparking fears of currency dilution and rising national debt.<\/p>\n

\u201cThat optimism now looks set to unwind.\u201d Schamotta wrote.<\/p>\n

\u201cWe expect the loonie to gap lower at the Sydney\/Tokyo open tomorrow as the trade-risk discount is rebuilt and bullish bets are flushed out.\u201d<\/p>\n

08\/22\/26 12:08Carney: \u2018You are at war when you get attacked\u2019 <\/p>\n

\u2013 Marie Woolf<\/p>\n

Asked about the tone of his remarks, which suggested that he is at war, Carney said: <\/p>\n

\u201cYou are at war when you get attacked. We got attacked,\u201d adding:<\/p>\n

\u201cThat\u2019s fine. We\u2019ve got the reserves. We\u2019ve got resilience. We\u2019ve got the plan. We\u2019ve got the focus. We\u2019ll respond \u2013 we are going to focus on what we can control. We are going to build.\u201d<\/p>\n

08\/22\/26 12:05Carney ties tax system\u2019s role in investment to trade retaliation <\/p>\n

\u2013 Ryan MacDonald<\/p>\n

Interesting point from the PM on Canada\u2019s tax system. The government has committed to a program review and Carney is now pairing that up with trade retaliation by saying that the review will focus on looking at how the tax system can incentivize investment and entrepreneurship. <\/p>\n

08\/22\/26 11:56Carney is blunt on critical minerals: No exclusive access, ever<\/p>\n

\u2013 Ryan MacDonald<\/p>\n

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Aerial view of the Northern Graphite mine in Lac-des-Iles, Quebec, on March 7, 2024.SEBASTIEN ST-JEAN\/AFP\/Getty Images<\/p>\n

There were ongoing questions about what the U.S. was asking around critical minerals in relation to the trade talks. The PM has now stated bluntly that Canada \u201cwould never give exclusive access\u201d to the country\u2019s critical minerals. <\/p>\n

Interestingly, he painted the end of this round of negotiations as a lost opportunity to co-operate with the U.S. – highlighting Canada\u2019s efforts with G7 countries – on critical minerals by tying the issue to auto production.<\/p>\n

08\/22\/26 11:44Carney: Canada will provide tariff protection, support<\/p>\n

\u2013 Marie Woolf<\/p>\n

Carney said Canada is \u201cgoing to hit back\u201d as well as providing full tariff protection where necessary, for example, on steel products, \u201cto prevent American businesses coming in\u201d and taking their business. <\/p>\n

He said the government will provide support for affected businesses. <\/p>\n

08\/22\/26 11:42U.S. putting trucks on the table was a direct hit at Canada <\/p>\n

\u2013 Ryan MacDonald<\/p>\n

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Cars are loaded on trucks for shipping at Oakville Assembly plant on September 8, 2020.Glenn LOWSON\/The Globe and Mail<\/p>\n

It\u2019s interesting how specific PM Carney has been on how negotiations related to autos broke down. Canadian content was obviously a sticking point as well as the baseline tariff, but the idea that the Americans wanted to remove medium and heavy-duty trucks from the trade equation is a direct hit at Canada. <\/p>\n

The federal government is giving $464.5-million to Ford to refit the automaker\u2019s plant in Oakville, Ont., to make heavy-duty pickup trucks.<\/p>\n

08\/22\/26 11:39Carney: U.S. administration was not unified at trade table<\/p>\n

\u2013 Marie Woolf<\/p>\n

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Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette listen as Prime Minister Mark Carney speaks about Canada’s response to new U.S. tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026.PATRICK DOYLE\/The Canadian Press<\/p>\n

Responding to questions from reporters about whether U.S. Secretary of Commerce Howard Lutnick\u2019s involvement had had an impact on the talks collapsing, Carney said the Canadian team, including Canada\u2019s ambassador in Washington, were unified.<\/p>\n

\u201cYou cannot say that about the United States administration,\u201d he said.<\/p>\n

08\/22\/26 11:37Carney underscores the importance of energy to Canada\u2019s future<\/p>\n

\u2013 Ryan MacDonald<\/p>\n

The PM is putting down a lot of lines related to energy. His point – that controlling our energy means controlling our destiny – is a key message for this government. <\/p>\n

His reference to the renewed proposed agreement at Churchill Falls between Quebec and Newfoundland and Labrador is important. It\u2019s not a done deal. The federal government is building it into a critical part of Canada\u2019s energy infrastructure that must be completed, so there is plenty at stake. <\/p>\n

As Carney says, \u201cthese are the initiatives that are the future of our country.\u201d<\/p>\n

08\/22\/26 11:35We set our own course: Carney<\/p>\n

\u2013 Marie Woolf<\/p>\n

Carney said the new U.S. tariffs \u201care designed to hurt us and divide us. They are a miscalculation.\u201d<\/p>\n

\u201cThey are a miscalculation because Canadians have always taken care of each other,\u201d he added.<\/p>\n

He said Canada is stronger than when the U.S. started the trade war.<\/p>\n

He said Canadians have met the moment with small acts of solidarity, such as vacationing in national parks and buying Canadian products.<\/p>\n

Carney said last spring he had warned that the U.S. \u201cis trying to break us so they can own us \u2013 and I promise that that will never happen.\u201d<\/p>\n

\u201cCanada is becoming stronger and less dependent on America,\u201d he said. \u201cWe are already giving ourselves more than they can take away, and we are just getting started.\u201d<\/p>\n

\u201cCanadians don\u2019t submit to the weather, we thrive on it,\u201d he said. \u201cWe don\u2019t wait to see which way the wind\u2019s blowing, or surrender ourselves to the waves to be storm-tossed by events. We set our own course. We make our own weather.\u201d<\/p>\n

08\/22\/26 11:29Carney: Retaliation will be a \u2018focused response\u2019 <\/p>\n

\u2013 Marie Woolf<\/p>\n

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Prime Minister Mark Carney speaks about Canada’s response to new U.S. tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026.PATRICK DOYLE\/The Canadian Press<\/p>\n

Carney said Canada will match Washington\u2019s new tariffs \u201cdollar for dollar in order to protect Canadians workers, farmers, families and businesses.\u201d<\/p>\n

He said Canada\u2019s response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. <\/p>\n

It will include products subjected to the U.S.\u2019s \u201cunjustified section 232 and 338 tariffs\u201d imposed by Washington. <\/p>\n

He said this is \u201ca focused response\u201d to protect and defend Canadian industries and allow them to compete with U.S. products.<\/p>\n

08\/22\/26 11:28Sovereignty talk hints at U.S. demands for \u2018digital trade alignment\u2019<\/p>\n

\u2013 Ryan MacDonald<\/p>\n

The PM\u2019s full-throated reference to sovereignty and how the Americans tried to put these questions on the table sounds like a reference to USTR\u2019s Jamieson Greer\u2019s statement that the table deal the Americans were touting including \u201cdigital trade alignment,\u201d which raises questions about autonomy related to tech sovereignty and regulatory control. <\/p>\n

08\/22\/26 11:23Carney walks a fine line on energy <\/p>\n

\u2013 Ryan MacDonald<\/p>\n

PM Carney is walking a fine line on energy, saying: \u201cCanada fuels American\u2019s growth \u2026 I don\u2019t think they want us to stop sending any of that energy\u201d. Tariffs on energy exports have so far been off the table for Canada. It doesn\u2019t sound like that\u2019s changing today. <\/p>\n

08\/22\/26 11:23An existential threat to Canada-U.S. trade relationship<\/p>\n

\u2013 Ryan MacDonald<\/p>\n

The PM\u2019s reference to \u201cthe storm that blows in from Washington\u201d and the fact that \u201cAmerica has changed\u201d is a direct reference to the notion that while these negotiations may have failed, there is now an existential threat to the Canada-U.S. trade relationship.<\/p>\n

08\/22\/26 11:21Carney: They asked too much<\/p>\n

\u2013 Marie Woolf<\/p>\n

\u201cIn short they asked too much and offered too little,\u201d Carney said.<\/p>\n

\u201cMore fundamentally, the cumulative effect of U.S. demands revealed the limits of their commitment to a true economic partnership,\u201d he said.<\/p>\n

08\/22\/26 11:20Carney: We will not compromise Canada\u2019s sovereignty<\/p>\n

\u2013 Marie Woolf<\/p>\n

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Prime Minister Mark Carney speaks about Canada’s response to new U.S. tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026.PATRICK DOYLE\/The Canadian Press<\/p>\n

Carney said Canada had taken several steps in good faith to try to find compromise and secure a comprehensive deal in the best interests of both Canadians and Americans. <\/p>\n

He said the objectives in the latest talks had been to preserve tariff-free access to the U.S. for the vast majority of Canadian businesses.<\/p>\n

\u201cCanada has made offers to secure a fair comprehensive deal that would be in the best interests of Canadians. We were willing to drop our remaining retaliatory tariffs on strategic sectors,\u201d particularly steel aluminium and autos, he said. <\/p>\n

But he said the government was \u201cnot prepared to compromise Canada\u2019s sovereignty or to undermine our key industries.\u201d<\/p>\n

08\/22\/26 11:15Carney: Canada fuels American growth<\/p>\n

\u2013 Marie Woolf<\/p>\n

Carney said Canada fuels American growth, supplying natural gas imports, electricity imports and crude oil imports. <\/p>\n

\u201cI don\u2019t think they want us to stop sending any of that energy,\u201d he said.<\/p>\n

08\/22\/26 11:14Carney: \u2018We will not give what they\u2019ve asked\u2019<\/p>\n

\u2013 Marie Woolf<\/p>\n

At a press conference, Mark Carney said he wanted to explain why Canada \u201cis walking away from a bad deal.\u201d<\/p>\n

He said \u201cwe cannot accept what they have offered and we will not give what they\u2019ve asked.\u201d<\/p>\n

08\/22\/26 11:04Tariffs and trade uncertainty will hurt business confidence: senior BMO economist <\/p>\n

\u2013 Sophia Bertuzzi<\/p>\n

In a research note, Robert Kavcic, senior economist at BMO, said while new tariffs still sound digestible in the aggregate \u2013 some businesses and industries would be hit \u201cextremely hard.\u201d<\/p>\n

The bank\u2019s initial estimate is for these tariffs to carve roughly half a percentage point from Canadian growth, although pending details on Canada\u2019s retaliation and the amount of fiscal support could move that estimate.<\/p>\n

\u201cUnfortunately, this breakdown comes just as growth looked to be finding better momentum,\u201d Kavcic wrote.<\/p>\n

\u201cThe uncertainty will likely endure as long as the tariffs persist: on one hand, businesses could again recognize the need to move past the tariff news; on the other, questions about the effectiveness of the USMCA and potential for any lasting trade deal could hit business investment over the longer term.\u201d<\/p>\n

08\/22\/26 11:03Former RBC CEO looks ahead to \u2018worst-case scenario\u2019 <\/p>\n

\u2013 Jameson Berkow<\/p>\n

Gord Nixon, the CEO of Royal Bank of Canada from 2001-14 and current member of the board of directors at George Weston and BlackRock, says escalation could lead to the \u201cworst-case scenario.\u201d <\/p>\n

\u201cThe worst-case scenario is the scorched-earth approach, where you end up with Canada imposing retaliatory tariffs, and then who knows what the reaction of the Americans is going to be,\u201d Nixon said. \u201cThat would obviously not be a healthy scenario. It may make some people feel better, but it\u2019s not going to be good for anybody in the long run in either country.<\/p>\n

\u201cThe worst-case scenario is more and more escalation and that\u2019s what hopefully they\u2019re trying to avoid, but whether it\u2019s avoidable or not is a $64,000 question to which I don\u2019t think anyone has the answer because you\u2019re dealing with a very unpredictable side. <\/p>\n

\u201cThe prime minister and Canada are very predictable. We\u2019ve got a brilliant negotiating team and a very strong and rational and logical prime minister, but you can\u2019t negotiate with yourself.\u201d<\/p>\n

08\/22\/26 10:45Bloc Qu\u00e9b\u00e9cois leader wants retaliatory tariffs to flow to affected businesses<\/p>\n

\u2013 Marie Woolf<\/p>\n

Bloc Qu\u00e9b\u00e9cois leader Yves-Fran\u00e7ois Blanchet said the \u201cU.S. decision to impose new tariffs of 50 per cent on $28 billion of goods is toxic for the Quebec, Canadian and American economies.\u201d<\/p>\n

In a statement, he welcomed Mark Carney\u2019s willingness to respond \u201cwith tariffs of equal value.\u201d<\/p>\n

He said the funds that flow from these tariffs should be reserved exclusively for the companies and sectors affected.<\/p>\n

08\/22\/26 10:37Ford outlines Ontario\u2019s approach in letter to Carney<\/p>\n

\u2013 Jeff Gray<\/p>\n

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A drone view of the ArcelorMittal Dofasco steel plant, a day after U.S. President Donald Trump paused new tariffs on Canadian goods for three days, in Hamilton, Ontario, Canada, August 20, 2026.Carlos Osorio\/Reuters<\/p>\n

On Saturday morning, the office of Ontario Premier Doug Ford released a letter sent to Prime Minister Carney on Monday \u2013 five days before negotiations collapsed \u2013 that outlined his province\u2019s approach to the talks. <\/p>\n

The letter says \u201cno deal is better than a bad deal.\u201d But it also says if Ottawa were to accept a deal with tariffs on steel, autos and other sectors, it must make \u201cregulatory chances that improve the competitiveness of strategic sectors until we achieve zero tariffs\u201d such as \u201cemissions performance standards,\u201d including the industrial carbon tax.<\/p>\n

The letter also repeats Ontario\u2019s longstanding demand for \u201ccommon-sense\u201d or lessened greenhouse-gas emission targets for the auto sector as it reels from tariffs.<\/p>\n

08\/22\/26 10:31Media association backs federal government, says digital sovereignty must be defended <\/p>\n

\u2013 Marie Woolf<\/p>\n

Reynolds Mastin, President and CEO of the Canadian Media Producers Association, said the federal government had \u201cstood up for Canada by refusing to agree to an inequitable trade deal.\u201d<\/p>\n

Earlier this week, tech experts expressed concern that a deal with the U.S. could compromise Canada\u2019s sovereignty over its own digital policies and could lead to the online streaming act being scrapped.<\/p>\n

Their fears followed a social media post by U.S. Trade Representative Jamieson Greer who referred this week to \u201cdigital trade alignment.\u201d<\/p>\n

Mastin said in a statement that the online streaming act, which would make foreign streamers including Netflix promote Canadian content and financially support Canadian TV, film and music, is a \u201ckey pillar of Canadian cultural and digital sovereignty\u201d and needs to be defended.<\/p>\n

08\/22\/26 10:30Conservative leader Pierre Poilievre\u2019s statement<\/p>\n

\u2013 Marie Woolf<\/p>\n

Pierre Poilievre says \u201cConservatives are disappointed that the United States has chosen to impose further unjustified tariffs on Canada.\u201d <\/p>\n

He said Canada cannot \u201caccept a bad deal. Instead, we must continue the fight for tariff-free trade.\u201d<\/p>\n

Poilievre said the tariffs threaten \u201cthe jobs and livelihoods of families right across our country.\u201d<\/p>\n

\u201cCanadians must stand united to defend our country against these unfair attacks on our jobs and businesses. Canada cannot accept one-sided tariffs that will deindustrialize our country.\u201d<\/p>\n

Poilievre said he is seeking to speak to the Prime Minister later today.<\/p>\n

Conservatives are disappointed that the United States has chosen to impose further unjustified tariffs on Canada. They threaten the jobs and livelihoods of families right across our country.<\/p>\n

Canadians must stand united to defend our country against these unfair attacks on our\u2026<\/p>\n

\u2014 Pierre Poilievre (@PierrePoilievre) August 22, 2026<\/a> 08\/22\/26 10:28Mark Carney to meet with cabinet, premiers<\/p>\n

\u2013 Marie Woolf<\/p>\n

After the Prime Minister\u2019s press conference about Canada\u2019s response to the imposition of U.S. tariffs he will chair an emergency meeting of the Cabinet. Following that, he plans to chair a meeting with the premiers about the suspension of trade negotiations with the U.S.<\/p>\n

08\/22\/26 10:17NDP Leader Avi Lewis\u2019 statement<\/p>\n

– Marie Woolf<\/p>\n

NDP Leader Avi Lewis said the prime minister was right to walk away from the negotiating table, adding \u201cno deal is better than a bad deal.\u201d<\/p>\n

\u201cAccepting a deal that would lock in pointless, destructive tariffs and undermine our ability to regulate big tech would have been disastrous for our workers, industries and sovereignty. PM Carney read the room by rejecting the Americans\u2019 offer,\u201d he said in a statement.<\/p>\n

Lewis added: \u201cWab Kinew got it exactly right – the President is weak and cannot be trusted to abide by an agreement. We should stand firm, knowing it\u2019s what the vast majority of Canadians want our government to do.\u201d<\/p>\n

08\/22\/26 09:55Prime Minister to hold press conference on Parliament Hill<\/p>\n

– The Canadian Press<\/p>\n

Prime Minister Mark Carney is set to speak to reporters this morning after a last-ditch effort to reach a new trade deal before a midnight tariff deadline failed Friday.<\/p>\n

A press conference is scheduled to take place on Parliament Hill at around 11 a.m.<\/p>\n

Carney has since suspended talks with the United States and summoned his negotiators back to Ottawa.<\/p>\n

The decision means new 50 per cent tariffs on billions of dollars in Canadian exports to the U.S. took effect at 12:01 a.m., and Carney vowed Canada would retaliate with equal measures of its own.<\/p>\n

Carney also said the government will introduce measures to support Canadian workers and businesses in the coming days. <\/p>\n

08\/22\/26 09:55Opinion: America is really being a bad friend<\/p>\n

\u2013 David Shribman<\/p>\n

In the long view \u2013 going back to Franklin Delano Roosevelt and his meetings with William Lyon Mackenzie King \u2013 the current break between the two countries can only be regarded with bewilderment that the negotiations were so fraught, so packed with bitter suspicion and the heartbreak and resentment that comes from being jilted and dishonoured.<\/p>\n

The talks went down to the wire, then dragged into a fevered overtime \u2013 all while, according to a L\u00e9ger poll released Monday, 56 per cent of Canadians wanted the government to \u201ctake a hard line and make no more concessions.\u201d<\/p>\n

In the end, Prime Minister Mark Carney took the hint from the Canadian public rather than the bait from the American president.<\/p>\n

These sorts of negotiations in ordinary times with conventional political figures in the White House were never a day at the beach, to be sure. But now there is a sea change in the political environment to match the climate change in the physical environment.<\/p>\n

Read the full analysis here<\/a>.<\/p>\n

08\/22\/26 09:45Read Prime Minister Mark Carney\u2019s full statement on ending trade talks <\/p>\n

– Globe staff<\/p>\n

\u201cOver the past 18 months, Canada\u2019s new government has focused on building our strength at home, diversifying our partnerships abroad, and striking a fair deal with the United States.<\/p>\n

Our objectives in our trade negotiations have been to:<\/p>\n

Preserve tariff-free access to the U.S. for the vast majority of Canadian business;Provide greater stability to our trade relationship;Significantly reduce U.S. tariffs on our key strategic industries, so that Canadian businesses in these sectors would have the best access of any in the world;Protect our small and medium-sized businesses \u2013 the lifeblood of our economy \u2013 including by removing the imminent threat of new tariffs; andMaintain our flexibility, independence, and sovereignty so we can keep building the Canada we want.<\/p>\n

We have recognised from the beginning that America has changed, and that we will not return to our old relationship. Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.<\/p>\n

We have worked in that context. To strike a fair deal that would provide the best access to the U.S. market and greater certainty to Canadian businesses and workers. Throughout, our goal has been to secure the best deal for Canadians, never a deal at any price or on any deadline.”<\/p>\n

Read more from his statement below.<\/p>\n

My statement on Canada-U.S. trade negotiations: pic.twitter.com\/65OuQH40ra<\/a><\/p>\n

\u2014 Mark Carney (@MarkJCarney) August 22, 2026<\/a> 08\/22\/26 09:22Not all regions are hit equally by the new tariffs<\/p>\n

– Jason Kirby, Mark Rendell<\/p>\n

Three provinces will bear the brunt of the new tariffs: Quebec, British Columbia and Ontario.<\/p>\n

For B.C., the tariffs will affect roughly 14.5 per cent of the province\u2019s shipments to the U.S., based on year-to-date trade numbers, leaving it acutely exposed. The lumber and electronics industries will be hardest hit.<\/p>\n

But Quebec is also uniquely exposed. In a recent report, National Bank of Canada economists calculated the province already faces the highest effective tariff rate for goods shipped to the U.S., at roughly 7 per cent.<\/p>\n

With the Section 338 tariffs, that tariff rate jumps to 11 per cent, with the province\u2019s dairy, furniture, electronics and paperboard sectors all coming under fire.<\/p>\n

The Prairie provinces escape largely unscathed as a result of Trump\u2019s decision to spare energy and potash imports from new tariffs.<\/p>\n

08\/22\/26 09:17Which products do the tariffs hit and which industries are most exposed?<\/p>\n

– Jason Kirby, Mark Rendell<\/p>\n

Since Donald Trump unveiled his Section 338 hit list in July, a lot of attention has gone to some of the particularly Canadian products at risk, such as hockey sticks and skates.<\/p>\n

The reality is U.S.-bound shipments of hockey-related gear (around US$20 million a year) are dwarfed by other products, with US$4.4-billion worth of electronics and electrical equipment hit by the tariffs. <\/p>\n

Some companies in that sector have already warned<\/a> that a 50-per-cent levy would be devastating. Likewise, furniture manufacturers have been bracing for a sharp slowdown in orders.<\/p>\n

Roughly 30 per cent of U.S. imports of Canadian dairy, a sector that has drawn Donald Trump\u2019s ire, are exposed to the tariffs. So, too, is a large share of Canadian alcohol shipments.<\/p>\n

08\/22\/26 09:10A history lesson on the Tariff Act<\/p>\n

– Associated Press<\/p>\n

The 50 per cent tariffs on US$28-billion of Canadian goods are being put into force through Section 338 of the Smoot-Hawley Tariff Act of 1930. Nearly a century ago, with the U.S. and world economies in collapse, the U.S. Congress passed the law, which imposed taxes on imports from around the world. The tariffs were named after their congressional sponsors and are notorious among economists and historians for limiting world commerce and making the Great Depression worse.<\/p>\n

Section 338, which has never been used before to impose tariffs, authorizes the U.S. president to slap import taxes of up to 50 per cent on imports from countries that have discriminated against U.S. businesses. No investigation is required to justify the levies. Nor is there any limit on how long they can stay in place.<\/p>\n

08\/22\/26 08:50Premiers Danielle Smith, David Eby, Doug Ford other politicians release statements<\/p>\n

– Globe staff<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Alberta Premier Danielle Smith announces a proposed pipeline from Alberta to the B.C. coast in Calgary on Thursday, July 02, 2026.Todd Korol\/The Canadian Press<\/p>\n

Here\u2019s how Canadian leaders and others are reacting to the news.<\/p>\n

Alberta Premier Danielle Smith said on social media she is \u201cdeeply disappointed\u201d that Canada and the United States were not able to reach a trade agreement.<\/p>\n

\u201cNo one benefits from a trade war,\u201d she said.<\/p>\n

Smith also said she welcomed the federal government\u2019s pledge to provide relief for those businesses that are impacted.<\/p>\n

\u201cAlberta will continue to advocate for a strong tariff-free relationship between Canada and the U.S., and I will be urging the federal government to restart negotiations as soon as possible,\u201d she said.<\/p>\n

I am deeply disappointed that Canada and the United States have not been able to reach a trade agreement.<\/p>\n

Alberta has always advocated for a tariff free relationship, and will continue to do so. No one benefits from a trade war. Tariffs and counter-tariffs hurt businesses,\u2026<\/p>\n

\u2014 Danielle Smith (@ABDanielleSmith) August 22, 2026<\/a> <\/p>\n

British Columbia Premier David Eby said on social media Canadians\u2019 politeness \u201cshould never be mistaken for weakness.\u201d<\/p>\n

\u201cWe\u2019ll always defend ourselves,\u201d he said. \u201cWe didn\u2019t ask for this, but we\u2019ll keep fighting for as long as it takes.\u201d<\/p>\n

British Columbians will always stand with Canada. <\/p>\n

Our politeness should never be mistaken for weakness.<\/p>\n

We\u2019ll always defend ourselves. <\/p>\n

We didn\u2019t ask for this, but we\u2019ll keep fighting for as long as it takes. https:\/\/t.co\/Vz8Rlml0Tm<\/a><\/p>\n

\u2014 David Eby (@Dave_Eby) August 22, 2026<\/a> <\/p>\n

Ontario Premier Doug Ford wrote on social media on Friday night that the prime minister \u201chas my full support for a strong response,\u201d echoing Carney\u2019s dollar for dollar language.<\/p>\n

Former Alberta premier Jason Kenney applauded Carney\u2019s move, saying on social media that \u201cCanada clearly made a serious, good faith effort to get greater stability and market access, and remains ready to find a fair, balanced agreement.\u201d<\/p>\n

\u201c\u2018But we are not cravenly surrendering in the face of constant economic and political aggression,\u201d he said. \u201cResponding to the new U.S. tariffs with counter tariffs is exactly the right thing to do at this time.\u201d<\/p>\n

Susan Holt, Premier of New Brunswick, said in a statement that her province stands strong and united with Team Canada.<\/p>\n

\u201cNow, more than ever, we need to double down on buying local and supporting New Brunswick businesses and workers.\u201d<\/p>\n

PEI Premier Rob Lantz also vowed to continue working alongside the other premiers and the federal government \u201cto stand up for Canadian interests and make sure Prince Edward Island has a strong voice in the path forward.\u201d<\/p>\n

He added that the Team Canada approach has kept the country strong and united throughout negotiations, and Canadians need that same strength and unity now.<\/p>\n

08\/22\/26 08:30A \u2018body blow to North American competitiveness\u2019<\/p>\n

– Globe staff<\/p>\n

Candace Laing, president and CEO of the Canadian Chamber of Commerce and member of the prime minister\u2019s advisory committee on Canada-U.S. economic relations, said in a statement that this will be a \u201cbody blow to North American competitiveness in this self-defeating trade saga.\u201d<\/p>\n

\u201cA whopping, non-absorbable tariff is not sustainable or viable for business,\u201d she said. \u201cFor a small Canadian exporter operating on tight margins, this isn\u2019t an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford.\u201d<\/p>\n

Laing said Americans will see their costs go up, while Canadians will see customers, investment and small businesses disappear.<\/p>\n

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, expressed his concerns about the situation.<\/p>\n

\u201cWhile I\u2019m hoping more will come out on what happened and where we go from here, this is deeply troubling for thousands of small Canadian exporters.<\/p>\n

\u201cA full 40 per cent of small exporters sell items on the new 10+ page list of items facing 50 per cent tariffs. Many CFIB members have said this will end their US sales, and some have reported this will kill their businesses.<\/p>\n

\u201cI hope that discussions continue and an interim deal can be quickly found.\u201d<\/p>\n

08\/22\/26 08:05What Trump\u2019s new tariffs mean for Canada\u2019s economy<\/p>\n

– Mark Rendell<\/p>\n

On the surface, the fallout from the section 338 tariffs appears limited, but the measure of trade pain is in the eye of the beholder.<\/p>\n

The 50-per-cent tariffs would apply to only 5 per cent of Canada\u2019s exports to the U.S., and the effect on Canada\u2019s gross domestic product would be relatively small. Royal Bank of Canada pegs the impact at 0.4 per cent of GDP, while Capital Economics estimates the fallout at 0.6 per cent.<\/p>\n

Even so, a collapse in those affected exports \u201cwould still be enough to push already-weak GDP growth back towards zero,\u201d Bradley Saunders, North America economist with Capital Economics, wrote in a new report. Canada\u2019s economy got off to a rocky start this year with annualized growth in the first quarter declining for the second consecutive quarter, but is on track for a rebound when second-quarter numbers are released later this month.<\/p>\n

But below the surface, pockets of Canada\u2019s economy and job market will be particularly exposed, according to a recent analysis<\/a> by RBC. The tariffs could hurt roughly 20 per cent of production and jobs in industries such as apparel and electrical equipment.<\/p>\n

08\/22\/26 07:50Canada fires back after no deal reached with U.S.<\/p>\n

– Adrian Morrow<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Prime Minister Mark Carney is shown after his cabinet’s swearing-in ceremony on May 13, 2025 in Ottawa.Andrej Ivanov\/Getty Images<\/p>\n

A tentative trade deal between Canada and the U.S. collapsed<\/a> less than an hour before a late Friday deadline, triggering the imposition of President Donald Trump\u2019s latest round of 50-per cent-tariffs on $US28-billion of Canadian exports and a vow of \u201cdollar-for-dollar\u201d retaliation by Prime Minister Mark Carney.<\/p>\n

\u201cLast-minute changes in the U.S. proposed terms were unfair, uneconomic and called into question the reliability of any deal,\u201d the Prime Minister said in a statement. On Mr. Trump\u2019s new levies, he added, \u201cCanada will match those tariffs dollar for dollar to protect our workers and businesses.\u201d<\/p>\n

U.S. Trade Representative Jamieson Greer told reporters on a conference call late Friday that it was Canada that caused the deal to fall apart by asking for more.<\/p>\n

\u201cDespite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,\u201d he said.<\/p>\n

08\/22\/26 07:01The products that the tariffs hit and the most exposed industries <\/p>\n

– Mark Rendell<\/p>\n

Since Mr. Trump unveiled his section 338 hit list in July, a lot of attention has gone to some of the particularly Canadian products at risk, such as hockey sticks and skates.<\/p>\n

The reality is U.S.-bound shipments of hockey-related gear (around US$20-million a year) are dwarfed by other products, with US$4.4-billion worth of electronics and electrical equipment set to be hit by the tariffs.<\/p>\n

Some companies in that sector have already warned<\/a> that a 50-per-cent levy would be devastating. Likewise, furniture manufacturers have been bracing for a sharp slowdown in orders if the tariffs take effect.<\/p>\n

Roughly 30 per cent of U.S. imports of Canadian dairy, a sector that has drawn Mr. Trump\u2019s ire, are exposed to the tariffs. So, too, is a large share of Canadian alcohol shipments.<\/p>\n

In earnings calls, companies have been pressed by analysts about the 338 tariffs. Dino Bianco, the chief executive officer of tissue-paper maker Kruger Products Ltd., said roughly 1 per cent of its total sales would be affected.<\/p>\n

In the apparel sector, the tariff list includes men\u2019s, women\u2019s and children\u2019s jackets containing \u201cdown and waterfowl plumage,\u201d which seems aimed at Canada Goose Inc. <\/p>\n

In the company\u2019s first-quarter earnings call, chief financial officer Neil Bowden said a portion of its products would be affected and that the impact on Canada Goose\u2019s 2027 operating margin \u201cwould be less than 200 basis points,\u201d or two percentage points.<\/p>\n

The company\u2019s stock price has fallen 14.1 per cent since the tariffs were announced on July 20. <\/p>\n