President Donald Trump imposed 50% tariffs on roughly $20 billion of Canadian imports on August 22, 2026, after bilateral trade negotiations collapsed. Canadian Prime Minister Mark Carney said Ottawa would respond dollar for dollar with retaliatory measures beginning September 8, opening a narrow window for de-escalation. The United States recorded a $48.3 billion goods trade deficit with Canada in 2025, while Trump has cited estimates ranging from $60 billion to $250 billion. Energy accounts for a significant share of the imbalance, including Canadian heavy crude used by U.S. refineries. The tariffs also threaten integrated auto supply chains and companies exposed to cross-border trade. The Canadian dollar has remained resilient despite the escalation, but Canadian energy and manufacturing shares and U.S. businesses reliant on Canadian supplies face increased volatility. An earlier Nanos Research poll for The Globe and Mail found that 85% of 1,037 respondents supported or somewhat supported Carney’s rejection of a proposed U.S. trade deal, while 80% backed dollar-for-dollar countertariffs. The survey also found that about seven in 10 were willing to accept higher prices, even as about two-thirds worried about the effect of tariffs on their households.