08/22/26 09:55

Prime Minister to hold press conference on Parliament Hill

• The Canadian Press

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.

A press conference is scheduled to take place on Parliament Hill at around 11 a.m.

Carney has since suspended talks with the United States and summoned his negotiators back to Ottawa.

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.

Carney also said the government will introduce measures to support Canadian workers and businesses in the coming days.

08/22/26 09:55

Opinion: America is really being a bad friend

– David Shribman

In the long view – going back to Franklin Delano Roosevelt and his meetings with William Lyon Mackenzie King – 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.

The talks went down to the wire, then dragged into a fevered overtime – all while, according to a Léger poll released Monday, 56 per cent of Canadians wanted the government to “take a hard line and make no more concessions.”

In the end, Prime Minister Mark Carney took the hint from the Canadian public rather than the bait from the American president.

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.

08/22/26 09:45

Read Prime Minister Mark Carney’s full statement on ending trade talks

• Globe staff

“Over the past 18 months, Canada’s new government has focused on building our strength at home, diversifying our partnerships abroad, and striking a fair deal with the United States.

Our objectives in our trade negotiations have been to:

• 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 – the lifeblood of our economy – including by removing the imminent threat of new tariffs; and
• Maintain our flexibility, independence, and sovereignty so we can keep building the Canada we want.

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.

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."

My statement on Canada-U.S. trade negotiations: pic.twitter.com/65OuQH40ra

— Mark Carney (@MarkJCarney) August 22, 2026

08/22/26 09:22

Not all regions are hit equally by the new tariffs

• Jason Kirby, Mark Rendell

Three provinces will bear the brunt of the new tariffs: Quebec, British Columbia and Ontario.

For B.C., the tariffs will affect roughly 14.5 per cent of the province’s 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.

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.

With the Section 338 tariffs, that tariff rate jumps to 11 per cent, with the province’s dairy, furniture, electronics and paperboard sectors all coming under fire.

The Prairie provinces escape largely unscathed as a result of Trump’s decision to spare energy and potash imports from new tariffs.

08/22/26 09:17

Which products do the tariffs hit and which industries are most exposed?

• Jason Kirby, Mark Rendell

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.

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.

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

Roughly 30 per cent of U.S. imports of Canadian dairy, a sector that has drawn Donald Trump’s ire, are exposed to the tariffs. So, too, is a large share of Canadian alcohol shipments.

08/22/26 09:10

A history lesson on the Tariff Act

• Associated Press

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.

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.

08/22/26 08:50

Premiers Danielle Smith, David Eby, Doug Ford other politicians release statements

• Globe staff

Here’s how Canadian leaders and others are reacting to the news.

Alberta Premier Danielle Smith said on social media she is “deeply disappointed” that Canada and the United States were not able to reach a trade agreement.

“No one benefits from a trade war,” she said.

Smith also said she welcomed the federal government’s pledge to provide relief for those businesses that are impacted.

“Alberta 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,” she said.

I am deeply disappointed that Canada and the United States have not been able to reach a trade agreement.

— Danielle Smith (@ABDanielleSmith) August 22, 2026

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,…

British Columbia Premier David Eby said on social media Canadians’ politeness “should never be mistaken for weakness.”

“We’ll always defend ourselves,” he said. “We didn’t ask for this, but we’ll keep fighting for as long as it takes.”

British Columbians will always stand with Canada.

— David Eby (@Dave_Eby) August 22, 2026

Our politeness should never be mistaken for weakness.

We’ll always defend ourselves.

We didn’t ask for this, but we’ll keep fighting for as long as it takes. https://t.co/Vz8Rlml0Tm

Ontario Premier Doug Ford wrote on social media on Friday night that the prime minister “has my full support for a strong response,” echoing Carney’s dollar for dollar language.

Former Alberta premier Jason Kenney applauded Carney’s move, saying on social media that “Canada clearly made a serious, good faith effort to get greater stability and market access, and remains ready to find a fair, balanced agreement.”

“‘But we are not cravenly surrendering in the face of constant economic and political aggression,” he said. “Responding to the new U.S. tariffs with counter tariffs is exactly the right thing to do at this time.”

Susan Holt, Premier of New Brunswick, said in a statement that her province stands strong and united with Team Canada.

“Now, more than ever, we need to double down on buying local and supporting New Brunswick businesses and workers.”

PEI Premier Rob Lantz also vowed to continue working alongside the other premiers and the federal government “to stand up for Canadian interests and make sure Prince Edward Island has a strong voice in the path forward.”

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.

08/22/26 08:30

A ‘body blow to North American competitiveness’

• Globe staff

Candace Laing, president and CEO of the Canadian Chamber of Commerce and member of the prime minister’s advisory committee on Canada-U.S. economic relations, said in a statement that this will be a “body blow to North American competitiveness in this self-defeating trade saga.”

“A whopping, non-absorbable tariff is not sustainable or viable for business,” she said. “For a small Canadian exporter operating on tight margins, this isn’t an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford.”

Laing said Americans will see their costs go up, while Canadians will see customers, investment and small businesses disappear.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, expressed his concerns about the situation.

“While I’m hoping more will come out on what happened and where we go from here, this is deeply troubling for thousands of small Canadian exporters.

“A 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.

“I hope that discussions continue and an interim deal can be quickly found.”

08/22/26 08:05

What Trump’s new tariffs mean for Canada’s economy

• Mark Rendell

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.

The 50-per-cent tariffs would apply to only 5 per cent of Canada’s exports to the U.S., and the effect on Canada’s 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.

Even so, a collapse in those affected exports “would still be enough to push already-weak GDP growth back towards zero,” Bradley Saunders, North America economist with Capital Economics, wrote in a new report. Canada’s 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.

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

08/22/26 07:50

Canada fires back after no deal reached with U.S.

• Adrian Morrow

A tentative trade deal between Canada and the U.S. collapsed less than an hour before a late Friday deadline, triggering the imposition of President Donald Trump’s latest round of 50-per cent-tariffs on $US28-billion of Canadian exports and a vow of “dollar-for-dollar” retaliation by Prime Minister Mark Carney.

“Last-minute changes in the U.S. proposed terms were unfair, uneconomic and called into question the reliability of any deal,” the Prime Minister said in a statement. On Mr. Trump’s new levies, he added, “Canada will match those tariffs dollar for dollar to protect our workers and businesses.”

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.

“Despite 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,” he said.

08/22/26 07:01

The products that the tariffs hit and the most exposed industries

• Mark Rendell

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.

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.

Some companies in that sector have already warned 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.

Roughly 30 per cent of U.S. imports of Canadian dairy, a sector that has drawn Mr. Trump’s ire, are exposed to the tariffs. So, too, is a large share of Canadian alcohol shipments.

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.

In the apparel sector, the tariff list includes men’s, women’s and children’s jackets containing “down and waterfowl plumage,” which seems aimed at Canada Goose Inc.

In the company’s 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’s 2027 operating margin “would be less than 200 basis points,” or two percentage points.

The company’s stock price has fallen 14.1 per cent since the tariffs were announced on July 20.