Canada in September 2026: the most important developments in economy
In Canada in September 2026, the economy was dominated by the trade war with the United States. Canada's retaliatory tariffs on billions of dollars of US goods took effect around September 8, with some duties reaching 50%, as talks stalled. On September 7 US President Donald Trump threatened to bar Bombardier from selling aircraft in the US unless it builds them there. On September 9 the United States announced a ban on Canadian alcohol, dairy products and motorcycles and new tariffs of up to 50% on other goods; the ban on about $1 billion of goods took effect on September 29. Canadian goods were also barred from US government purchases. Trump said on September 12 and 14 that a deal was likely fairly soon and downplayed leaving the USMCA, and Prime Minister Mark Carney said Canada will reach a deal. On September 28 Trump called Canada "one of the worst countries" to deal with. On September 17 he threatened the European Union with tariffs if it made Canada an associate member, an offer the EU had made on September 16.
The second theme was Carney's drive to attract investment. At the Canada Investment Summit, held in Ottawa and Toronto, his government courted C$1 trillion in investment, with a pitchbook of 167 projects. Ontario Teachers' Pension Plan pledged $10 billion, Canadian banks and pension funds pledged billions, and Ottawa announced an expanded tax writeoff for capital investment that covers pipelines. Canada also pursued trade ties elsewhere: India talks aimed to conclude by the G20, and agreements with the Philippines and ASEAN were near. On September 29 LNG Canada approved a Phase 2 expansion that doubles export capacity.
The third theme was the macroeconomy. Canada lost 42,000 jobs in August with unemployment steady at 6.4%. The Bank of Canada held its rate at 2.25% on September 2, and economists raised the odds of a rate hike in December as oil prices drove inflation. Governor Tiff Macklem said trade uncertainty could halve fourth-quarter growth. The Canadian dollar fell below 71 US cents on September 23 and reached a two-and-a-half-month low by September 28. The Parliamentary Budget Officer said Ottawa is not on track to balance its operating budget, contrary to Carney's claim, and Carney presented a $7.5 billion package on September 18.
by WorldBrief & Maksim Micheliov | AI-generated summary
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