Why Canada will suffer from Carney trying to ‘out-tough’ Trump

On 24 August 2026, Canada braced for a long trade war with the United States that may last beyond the US midterms. Trump threatened a 50% tariff on Canadian autos and trucks. Carney said the US needs to change its 'attitude', called the tariff threat unsurprising, and said a trade deal remains possible. The Canadian dollar tumbled as the trade rift threatens the growth outlook.

Ontario's premier said Canada should be ready to cut off electricity and critical minerals to the US and that the US 'won't get a grain of sand'. Carney also sounded the alarm over the auto industry. Firms in Canada and the US fear the impact, and a Toronto Sun column says tariffs mean pain for Canadian workers. The Telegraph argues Canada will suffer from Carney trying to 'out-tough' Trump.