The Latest on the escalating trade war between Canada and the United States

They followed new tariffs imposed by Trump on Canada in August, and Canada’s retaliatory tariffs, which took effect on Tuesday.

Here is the latest. All times eastern.

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3:18 p.m.

Canada’s economic growth is expected to rebound later this year and into 2027 as hiring activity strengthens and business confidence recovers, Signal49 Research says.

In its provincial five-year outlook, the Ottawa-based think tank formerly known as the Conference Board of Canada said the momentum is supported by stronger public and private investments, steady gains in consumer spending and an assumed easing of Canada-U.S. trade tensions.

Yet escalating tariffs, the ongoing conflict in the Middle East and looming demographic pressures are creating uncertainty and significant headwinds for the Canadian economy, the independent research organization said.

“Business investment has been really weak in Canada recently, but we’re seeing some signs that that could be turning around,” said Richard Forbes, principal economist at Signal49 Research. “It is coming from a very low level but it’s starting to turn the corner, so it is optimistic.”

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2:20 p.m.

Prime Minister Mark Carney says Canada is ready to strike a fair deal with the Americans and that he has spoken with U.S. President Donald Trump in recent days.

Referring to the war in Iran, he says the problems in global energy markets putting pressure on households around the world can be resolved if the “hostilities” come to an end.

He says any deal must not undermine Canada’s sovereignty or its ability to protect and promote official languages and Canadian culture.

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1:45 p.m.

An American economist and aide to U.S. President Donald Trump says Canada is not fighting as an equal in the ongoing trade war.

In an article published in Real Clear Markets, Peter Navarro compares Canada to a rowboat opening fire on an aircraft carrier.

“The carrier will notice. The rowboat will sink,” Navarro wrote, saying Canada is cozying up with “the mercantilist and predatory dog of Communist China” as it works to broaden its trading relationships.

“Not going to happen. Not on Trump’s watch,” he wrote. “O Canada. Make the smart move now. We’re not budging.”

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12:46 p.m.

Speaking to American news outlet CNBC, Conservative Leader Pierre Poilievre pitched a stronger North America and said he wants Canada and the U.S. to work together to confront rivals abroad.

The Tory leader was asked whether he thinks the damage done to the Canada-U.S. relationship can be repaired once President Donald Trump’s term has ended.

Poilievre said the two countries can work together if the administration wants free trade, but noted Canada is already diversifying its trade around the world.

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12:40 p.m.

Patrick Brown, mayor of Brampton, Ont., says the city is going to increasingly prioritize Canadian- and Brampton-made content in its procurement policies.

It’s part of a 10-point plan, Brown says, which will make the city less dependent on the United States and its economy, while strengthening Brampton’s manufacturing capacity.

Brown says he thinks it’s important to keep speaking with Americans because it can help break through the “chaos” of the current administration.

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12:15 p.m.

New Brunswick Premier Susan Holt has ordered the province’s public sector to stop buying American products when Canadian substitutes are available, saying the move is in response to the latest round of U.S. tariffs.

Her government will also ban the purchase of U.S. goods and services for contracts valued at more than $5 million starting Oct. 1.

Holt says her government is also looking to see if it has the authority to prevent Americans from obtaining fishing and hunting licences, as well as mining claims.

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9:30 a.m.

Ontario Premier Doug Ford says businesses affected by a new round of American tariffs and bans set to take effect later this month will be eligible for the province’s support programs.

In a speech to the Toronto Region Board of Trade, Ford says Ontario will expand eligibility for its tariff support programs to the affected industries so they can keep the lights on.

The Protect Ontario Financing Program offers businesses loans to help cover payroll, lease and utility payments, and the Ontario Together Trade Fund gives grants or loans to small- and medium-sized businesses to help reduce their reliance on American supply chains.

Ford says in his speech that Prime Minister Mark Carney was right to respond with dollar-for-dollar tariffs “to show President Trump that Canada will stand up for itself.”

This report by The Canadian Press was first published Sept. 10, 2026.