U.S.-Canada tariff escalation pressures markets as Collins urges renewed talks

Sep 9, 2026 13:59 (45d ago)

U.S.-Canada tariff escalation weakened North American markets and prompted Susan Collins to urge Washington to reopen trade negotiations.
Canada imposed dollar-for-dollar duties on 639 U.S. products, covering about $20 billion of goods at rates of 15% to 50%.
Champagne defended Ottawa’s response while Collins cited Maine’s exposure, including about $2 billion of annual non-petroleum Canadian imports and roughly $170 million of potentially affected exports.

North American markets weakened as escalating U.S.-Canada tariffs, retaliation, higher Treasury yields and shifting Federal Reserve expectations increased policy uncertainty. Canada’s countermeasures took effect Sept. 8 after failed talks, covering 639 U.S. products with duties of 15% to 50% and excluding U.S.-origin shipments already in transit. Finance Minister Francois-Philippe Champagne defended Ottawa’s dollar-for-dollar response, while Sen. Susan Collins (R-Maine) urged Vice President JD Vance and U.S. Trade Representative Jamieson Greer to reopen negotiations, warning that tariffs were raising costs for Maine families, manufacturers, farmers and municipalities. President Donald Trump signed five proclamations under Section 338 of the Tariff Act of 1930 after Canada’s retaliation; selected product changes take effect Sept. 15 and separate import bans begin Sept. 29. The S&P/TSX Composite Index fell 0.6% to 35,907, while CME FedWatch put the probability of a 25-basis-point Federal Reserve increase on Sept. 16 at 60.2%, contrasting with a Reuters survey in which roughly 70% of economists expected no change.