As the World now knows, Canada is in a Trade War with the United States as of midnight on August 22, 2026. I guess time will show how this will play out, but in all honesty, I am not worried.

I sat on Saturday and watched this press conference live and was very impressed by Prime Minister Mark Carney’s words. They are inspiring for me, as they are for so many other Canadians.

Prime Minister Mark Carney’s central message was blunt: Canada came close to reaching a new trade agreement with the United States, but Washington changed its demands at the last minute.  From what I have seen the US administration do with other nations has shown me this is what they do.

Canada will never defer to the US ever again for anything we do in our own Country. The United States government have lost the respect of Canadians, and I have a feeling it will be a long time before they get it back. I have nothing against Americans; I just don’t like Trump and most of his administration. Their behaviour shows me so many of the toxic traits I learned to be wary of in recent years. To me, they are bullies who think that because they have such a big country, with a big military, that other nations have to bow down to them.

Prime Minister Mark Carney concluded that the proposed deal was unfair, economically damaging and unreliable—so Canada walked away.

What happened

The United States imposed 50% tariffs on approximately $28 billion worth of Canadian goods, including hockey equipment, clothing, cement and beer.

Prime Minister Mark Carney said Canadian negotiators had been seeking an agreement that would:

• Preserve tariff-free access for most Canadian exports.
• Reduce U.S. tariffs on steel, aluminum, automobiles and other strategic industries.
• Protect Canadian small and medium-sized businesses.
• Restore some stability to the trading relationship.
• Preserve Canadian sovereignty and control over domestic policies.

Canada offered to remove its remaining retaliatory tariffs on steel, aluminum and automobiles if the United States substantially reduced its own tariffs. Canada was also willing to encourage provinces to put American alcohol back on store shelves.

However, Canada refused demands that could have weakened:

• Canadian sovereignty.
• Supply management.
• Strategic Canadian industries.
• Protection of the French language and Canadian culture.

Prime Minister Mark Carney summarized the American offer this way: “They asked too much and offered too little.” 

My favourite?  ‘We recognized that sometimes its signature was written in pencil,’ 

Canada’s response

Canada will match the new American tariffs dollar for dollar.

The Canadian counter-tariffs will focus on American products in sectors including:

• Steel
• Dairy
• Appliances
• Agricultural equipment
• Pulp and paper
• Electronics

The measures are scheduled to take effect on the Tuesday following Labour Day (Sept. 8), with a detailed list of affected products to be released beforehand.

Prime Minister Mark Carney admitted that the counter-tariffs will likely raise some prices and reduce consumer choice in Canada. He presented them as a reluctant but necessary response to protect Canadian workers and businesses.

Support for Canadians

The government says it has committed approximately $25 billion to help workers and businesses affected by the trade dispute. This includes assistance for small businesses, financing for major employers and help for industries trying to find markets outside the United States.

Prime Minister Mark Carney also pointed to measures intended to ease household costs, including tax reductions and the Canada Groceries and Essentials Benefit, which he said could provide as much as $1,890 per family.

Canada’s longer-term strategy

Prime Minister Mark Carney argued that Canada can no longer treat the United States as a completely stable or dependable trading partner. His government intends to reduce Canada’s dependence on the American market by:

• Expanding trade with Europe, India, ASEAN countries and other partners.
• Building ports, mines, energy corridors and other major infrastructure.
• Developing Canadian energy, defence, shipbuilding and manufacturing.
• Removing barriers to trade between Canadian provinces.
• Encouraging Canadians and governments to buy Canadian products.

He specifically mentioned the recently announced Canada–Quebec–Newfoundland and Labrador clean-energy development, describing it as the largest single investment in Canadian history and comparing its scale to a second James Bay project. This is in my own Province!

The bigger message

This was more than a tariff announcement. Prime Minister Mark Carney was arguing that the old Canada–U.S. economic relationship has fundamentally changed. He accused Washington of using economic integration as leverage and suggested that American commitments can no longer automatically be regarded as dependable.

His message was essentially:

Canada would still prefer a fair agreement, but it will not accept a bad deal merely to avoid confrontation.

The speech was firm, patriotic and deliberately reassuring. Prime Minister Mark Carney portrayed the tariff dispute as painful but also as an opportunity for Canada to become more self-reliant, strengthen internal trade and build stronger relationships elsewhere.