Prime Minister Mark Carney is warning Canadians of tough times ahead after retaliatory tariffs on U.S. goods took effect just after midnight on Tuesday.
U.S. President Donald Trump’s 50 per cent tariffs on nearly $28 billion worth of Canadian products came into force after trade talks between Ottawa and Washington broke down last month. As a response, Ottawa unveiled dollar-for-dollar counter-tariffs targeting the same value of U.S. goods.
Drawing from the list of products being tariffed by the U.S., the Canadian counter-tariffs target roughly 700 American imports, including dairy, plywood and sunscreen.
“We couldn’t accept what they offered. We wouldn’t give what they’d asked. As a result, the U.S. has imposed new tariffs designed to hurt and divide us,” Carney said last week.
Shortly after the countermeasures went into effect, Canada-U.S. Trade Minister Dominic LeBlanc said formal trade negotiations with the U.S. are “not taking place.” It remains to be seen if Canadian counter-tariffs will lead to further U.S. escalation and retaliation, which could target Canadian goods like alcohol, dairy and steel.
In the meantime, Canada is setting its eyes on a new alliance with the European Union that will include trade, security and critical raw materials.
Key details:
- Canada’s counter-tariffs target dairy, plywood, sunscreen
- Carney warns Canadians of tough times ahead
- Canada, EU to form new alliance: Bloomberg
- Trump threatens to block Bombardier sales in U.S.
- Trump takes aim at Canada on Truth Social
Here’s what’s happening on Sept. 8, 2026:
Carney warns Canadians of tough times ahead
Prime Minister Mark Carney is warning Canadians that the country’s pivot away from the United States will come at a cost, but that the alternative would be far worse.
In a national video address set to be released on Tuesday, Carney reiterated Canada’s plan to respond to the U.S. trade war, including retaliatory tariffs which kicked in just after midnight.
Carney says the aim is to come out stronger and more resilient so no country can hold Canada hostage.
The Canadian Press
What is Canada targeting?
Canada’s counter-tariffs include a 50 per cent tariff on a variety of American dairy products such as milk and cream, and a 25 per cent tariff on fresh cheese and curd. Canada is also targeting U.S. wood products with 25 per cent tariffs on softwood, including pine, fir and spruce.
Multiple steel and aluminum products are also being hit with a 50 per cent tariff, up from the current 25 per cent rate. They include steel rods, bars and sheets, along with prefabricated items such as bridges, towers, scaffolding, and door and window frames.
Some beauty products and makeup are now subject to 50 per cent tariffs, including perfumes, sunscreen and suntan products, lip and eye makeup, manicure and pedicure preparations, and hair products.
Phil Hahn, CTV News senior producer
Canada, EU to form new alliance: Bloomberg
Canada and the European Union are working to build a new all-encompassing alliance that will include trade, security, supply chains and critical raw materials, Bloomberg reports.
The new partnership will aim to offset the global power politics dominated by the U.S. and China.
Bloomberg reports that European Commission President Ursula von der Leyen is expected to announce the plans at her state of the union address in France, on Sept. 16.
Carney will attend the speech then address European lawmakers the following day.
Kayla Thompson, CTVNews.ca journalist
Bombardier ‘supports a local workforce’: Kansas senator
In a social media post on Tuesday, U.S. Senator for Kansas Jerry Moran said he’s contacted members of the Trump administration “to make certain the president is aware of the significant contributions of Bombardier to Kansas and the importance of its presence in Wichita.”
“The presence of Bombardier in Wichita supports a local workforce of more than a thousand employees, who contribute their talent and expertise to our nation’s defence and aerospace capabilities,” Moran wrote.
The senator added he will “continue working to see that Bombardier’s manufacturing operations not only remain in Kansas but continue to grow and create American jobs.”
Spencer Van Dyk, CTV News writer & produce
Bombardier shares fall 6.4 per cent
Bombardier (BBDb.TO) shares fell 6.4 per cent on Tuesday after U.S. President Donald Trump threatened the Canadian private jet maker’s access to the lucrative U.S. market, which accounts for about half of the company’s sales.
Trump made the threat in a post on Monday as a trade dispute between Washington and Ottawa escalates, with Canada introducing counter tariffs on $20 billion worth of U.S. goods. The Toronto Stock Exchange, on which Bombardier trades, was closed on Monday.
Reuters
Quebec on Bombardier threats
Quebec Premier Christine Fréchette offered her support to Bombardier after U.S. President Donald Trump threatened Monday to stop the sale of products from the Montreal-based company in the U.S.
Trump said in a social media post that the aircraft aren’t “good enough,” adding if Canada wants to keep selling Bombardier aircraft in the U.S., they must be built there.
Fréchette said in a social media post that she would not respond to provocation with provocation.
Robin Della Corte, CTV News Montreal digital reporter
‘Saskatchewan didn’t ask for this trade fight’: Moe
Saskatchewan Premier Scott Moe says that while counter-tariffs are “necessary” to respond to the “unjustified” tariffs imposed by the United States, the focus should be on getting negotiators back to the table to get “the best deal for Canadians.”
“Saskatchewan didn’t ask for this trade fight, but we still stand up for our people and industries,” he wrote in a post on social media Tuesday. “We’ll keep opening new markets, strengthening trade relationships and getting more Saskatchewan products to the world.”
Spencer Van Dyk, CTV News writer & producer
No formal trade talks with U.S.: LeBlanc
With Canadian counter-tariffs now in effect, Canada-U.S. Trade Minister Dominic LeBlanc’s office has confirmed that discussions between the two countries are still ongoing, though they do not involve trade talks.
“Canadian and American officials have maintained ongoing discussions on a range of issues, although formal trade negotiations are not taking place at this stage,” LeBlanc’s office said on Tuesday.
Kayla Thompson, CTVNews.ca, journalist
Quebec announces $1.5B buy local push
The Quebec government has announced a series of measures to promote buying locally in response to the escalating trade war between Canada and the United States.Premier Christine Fréchette says the measures will inject about $1.5 billion into the Quebec economy in the next four months.
Ministers adopted an order-in-council requiring the government to take steps to favour local businesses when it comes to awarding contracts, such as reserving public bids for companies with a place of business in Quebec and Canada.
The Canadian Press. Read the full story here.
‘Be prepared’: UNIFOR president on trade war length
The president of Canada’s largest private sector union is throwing her support behind Ottawa’s retaliatory tariffs against the U.S.
“I believe we’ve done everything possible as a country to get this resolved,” UNIFOR president Lana Payne told CTV News Channel on Tuesday. “And now we have to take the action we’re taking in order to bring things to a head.”
Payne, who is a member of the federal government’s Advisory Committee on Canada-U.S. Economic Relations, says Ottawa needs to ensure tariffs have only a minimal impact on Canadian workers, who are “bearing the brunt of this trade war.”
“And if the U.S. hits back, then we have to be prepared to put even more on the table,” Payne added. “We have to fight back and push back and hold the line and also be prepared that we might be in this place until the end of Trump’s term.”
Daniel Otis, CTVNews.ca journalist
Counter-tariffs could lead to further retaliation: lawyer
Canada’s retaliatory tariffs against the U.S. may be more symbolic than impactful, according to an international trade lawyer.
“I’m not sure how much this is going to (impact) the U.S.” KPMG Law’s Robert Glasgow told CTV News Channel on Tuesday. “This is, in my mind, very much a symbol for the government to be holding up.”
While Canadian counter-tariffs are meant to target crucial swing states like Michigan and Maine ahead of the U.S. midterm elections in November, Glasgow says they could also lead to further escalation by the Trump administration.
“Part of my fear here is that we end up being caught in a cycle where Canada takes steps that are big enough to be irritating to the United States, but not big enough to have a huge major impact,” Glasgow said.
“Then we end up with a U.S. government that’s annoyed, but not hamstrung. And so to that extent, the Trump administration may come back, as they’ve already indicated they may, with measures against other Canadian goods.”
Daniel Otis, CTVNews.ca journalist
Semi-trailer tariffs could hurt Canadians: COO
A Canadian company wants Ottawa to rethink its 25 per cent retaliatory tariff on U.S.-made semi-trailers.
Mack Keay is the chief operating officer of Ocean Trailer, Western Canada’s largest semi-trailer dealer and rental company.
“The biggest reason that we feel that semi-trailers are the wrong thing to tariff is because everything that you see around you, and everything on the grocery store shelves, came in a trailer,” Keay told CTV News Channel on Tuesday. “That freight cost is built into every item, so increasing that freight cost increases inflation for every Canadian.”
Keay says they have roughly 600 trailers on order from U.S. companies right now, worth approximately $45 million. With those orders now in jeopardy and few domestic alternatives, Keay says trucking companies will likely end up keeping older equipment on Canadian roads.
“There are a few Canadian semi-trailer manufacturers, but they build about one-tenth of what we would import in a year,” Keay said. “The average age of trucking fleets in Canada is older than it has ever been. Old equipment wears out. The more older equipment we have on Canadian roads, the less safe they are.”
Daniel Otis, CTVNews.ca journalist
Poilievre calls for transparency on rejected trade deal
Federal Conservative Party Leader Pierre Poilievre is asking Prime Minister Mark Carney to disclose details about the rejected trade deal between Canada and the U.S.
Speaking to reporters in Regina on Monday, Poilievre argued that Canadians have a right to know exactly what was offered.
“The prime minister obviously has an analysis on how his counter-tariffs will increase inflation and costs for small business,” Poilievre said.
“He has admitted that tariffs will be a tax on consumers, we just want him to release that analysis so that single moms, small business owners, seniors, know what they’re going to have to pay.”
Daniel Reech, CTV News Regina, journalist
Saskatchewan tax on U.S. liquor kicks in
Saskatchewan’s government is set to slap its retaliatory tax on American booze today amid the ongoing Canada-U.S. trade war.
Saskatchewan Premier Scott Moe announced last month his province would implement the 50 per cent fee on American alcohol on the same day Canada’s reciprocal tariffs take effect.
Any U.S.-produced alcohol purchased through the Saskatchewan Liquor and Gaming Authority’s online ordering system, used by retailers across the province, is being hit by the levy.
Unlike other Canadian provinces, Saskatchewan and Alberta do not have a ban on American alcohol products.
The Canadian Press, Read the full story here
Expect holiday season price increases
Depending on the product, Canadian consumers should expect to see prices increase due to tariffs and counter-tariffs within the next six to 18 weeks, according to Kyle Peacock, principal of Peacock Tariff Consulting.
“It really depends on the supply chain,” Peacock told CTV News Channel on Tuesday. “You’ll probably start to see this in the holiday season. So anyone that is looking to do holiday purchases, I would look at purchasing early to avoid these tariff increases.”
Peacock describes the list of tariffed items as a “living document” that is subject to change.
“Business owners out there, just be aware,” Peacock advised. “Just because you weren’t on the list today doesn’t mean you won’t be on the list in the future, or just because you’re on the list today doesn’t mean you won’t be off in the future.”
Daniel Otis, CTVNews.ca journalist
Trump map ‘wholly inappropriate’: Iceland
Iceland’s foreign ministry said Tuesday it had summoned the U.S. ambassador after U.S. President Donald Trump posted a map that seemingly showed the island as part of the United States.
“Minister for Foreign Affairs, Thorgerdur Katrin Gunnarsdottir, summoned the U.S. Ambassador yesterday to convey a clear message that the image was wholly inappropriate,” the ministry said in a statement to AFP.
Trump on Monday posted an image to social media with a map of North America in which Canada, Greenland, Mexico, much of central America and the Caribbean, as well as Iceland, were coloured in with the U.S. flag.
U.S. eyes trade deals with Latin America: Rubio
The United States was hoping to wrap up “good, solid” trade deals in the foreseeable future with Colombia, Peru and Ecuador, U.S. Secretary of State Marco Rubio said on Tuesday ahead of planned visits to the three countries this week.
Reuters
Canada’s ‘Steel City’ braces for tariff impacts
In the wake of 50 per cent U.S. tariffs and Canadian counter-tariffs, workers in Canada’s “Steel City” are bracing for layoffs and more uncertainty.
Hamilton, Ont. produced roughly half of all of Canada’s steel at one point and continues to produce millions of tonnes of the material each year.
“I think there’s a sense that people really are uncertain about the future,” Andrea Horwath, mayor of Hamilton, told CTV News on Monday. “They don’t know how bad it’s going to get. I think what they do know is that if it gets bad, the pain is going to be significant.”
To highlight the city’s industrial and steel-producing roots, the Art Gallery of Hamilton is currently hosting a “Made in Hamilton” exhibition, which features locally made automotives, appliances, hardware and pantry items.
“I think the exhibition tells a really unique story about what we’re going through now with the U.S.,” exhibition curator Tor Lukasik-Foss told CTV News. “A lot of what’s here represents the full potential of what a partnership between two countries looks and feels like.”
Kamil Karamali, CTV National News Weekend Correspondent
Former minister calls war ‘mutually detrimental’
In a new opinion piece, former Conservative cabinet minister James Moore laments the “mutually detrimental” trade war between the U.S. and Canada.
“The North American economic alliance has been the greatest trading partnership and wealth-building alignment in human history,” Moore writes.
“That U.S. President Donald Trump chose to pick a fight with Canada is a colossal step backwards for economic prosperity, a shattering of decades of accumulated trust and a threat to our security co-operation going forward.”
Moore, who served in prime minister Stephen Harper’s cabinet, argues that Trump’s trade war with Canada is likely a “distraction tactic” from the Iran conflict and the rising cost of living.
“One thing has become clear, however, and that is that these tariffs are both bad policy and bad politics and will ultimately fail economically and electorally for those who advocate and implement them with any vigour,” Moore says.
James Moore, CTV News Contributor, Read the full article here
Sapporo shifting production to U.S.
With 50 per cent tariffs targeting Canadian beer exports to the U.S., Japan’s Sapporo Breweries Ltd. has announced that it will be shifting some production from Canada to the U.S.
In Canada, Sapporo beer is made at the Sleeman Breweries facility in Guelph, Ont., which Sapporo acquired in 2006.According to several media reports, Sapporo plans to move production of non-alcoholic beer destined for the U.S. market to an American facility in the first half of 2027 in order to avoid tariffs. The Japanese beer giant says it is also considering opening a U.S. brewery on the West Coast.
Daniel Otis, CTVNews.ca journalist
Trump’s approval ratings an advantage for Canada
The ongoing trade war between once-great friends is a classic David vs. Goliath matchup from the outset.
The U.S. economy is 13 times larger and Canada sends roughly 70 per cent of its exports south of the border. These numbers alone make it an uphill climb for Ottawa, depending on how long this battle wages.
However, the current economic and political climate gives Ottawa some momentum. Canada’s economy grew at a 3.2 per cent annualized rate in the second quarter, more than twice the 1.5 per cent pace in the United States.
Moreover, President Trump’s approval ratings continue to fall, giving Carney massive space to engage aggressively against the White House. Around 60 per cent of Americans disapprove of Trump overall.
Among independents, which will determine if the Republican Party maintains control of Congress, more than 70 per cent disapprove of the president’s agenda.
These numbers will overwhelmingly shape the U.S. midterm elections which are exactly eight weeks away. The White House has no room for error and lawmakers are in jeopardy of losing their jobs everyday that this battle continues.
Eric Ham, CTV News political analyst in Washington
Trump targets Canada on Truth Social
U.S. President Donald Trump made a flurry of social media posts over the Labour Day long weekend targeting Canada. They included a Truth Social post on Monday showing a map covered entirely by a U.S. flag and the words “United States of America.” In the image, the U.S. map blankets Canada, Mexico, the Caribbean, Central America, Iceland and Greenland.
Trump also turned to Truth Social on Monday to declare, “NO MORE SELLING BOMBARDIER IN THE UNITED STATES!”
Elianna Lev, CTVNews.ca journalist
