Canada and the United States are in the middle of their ugliest trade fight in recent memory, and it just got worse. Prime Minister Mark Carney has suspended trade negotiations with Washington and announced a package of retaliatory measures set to take effect on September 8.
The trigger: a 50% US tariff on roughly $28 billion worth of Canadian exports that went into effect around August 21. Carney described the last-minute demands from US negotiators as unfair, and rather than continuing to talk, Canada walked away from the table.
What Canada is actually doing
The September 8 package is a two-pronged response. On the offensive side, Canada plans to impose equivalent tariffs on US goods, matching the pain dollar for dollar. On the defensive side, Ottawa is rolling out targeted support for industries caught in the crossfire.
That support includes a $5 billion fund aimed at businesses directly impacted by the tariffs. Sectors like dairy, alcohol, and automotive are expected to be the primary beneficiaries, given their heavy exposure to cross-border trade.
