What’s on the horizon in the Canada-U.S. trade war

As another chaotic day on the Canada-U.S. trade file winds down, there are a number of elements we’ll be watching.

For starters, Trump has yet to publicly weigh in on the trade talks collapsing and Prime Minister Mark Carney’s defiant counterattack. Knowing Trump’s penchant for off-the-cuff remarks, it’s almost certainly a question of when, not if.

That response could include additional threats of more punishment if Canada follows through with its planned counterattack. 

On Friday night, a senior Trump administration official said if the Canadians retaliate, Trump will be provided options to “level out the playing field.”

We may also get more information in the coming days on specific claims made by U.S. officials about why talks broke down — namely that Canada demanded last-minute changes to the proposed deal. It’s the mirror argument of what Carney said earlier today.

As for Canada’s counterattack, we’ll be watching for more details. Carney said the dollar-for-dollar counter-tariffs will kick in after Labour Day, focusing on key U.S. sectors like steel, dairy, appliances, pulp and paper and electronics.

The federal government will also provide support to Canadian businesses who will struggle throughout this trade dispute, and details on that will come alongside the counter-tariffs, Carney said.

“We will support these businesses for as long as it takes,” Carney said.