‘It’s going to be painful’: Trade watchers warn of tit-for-tat escalation between U.S. and Canada

Advertisement 1 This advertisement has not loaded yet, but your article continues below. Breadcrumb Trail Links HomeNewsCanadaCanadian Politics 'It’s going to be painful': Trade watchers warn of tit-for-tat escalation between U.S. and Canada Negotiations between Canadian and American officials have remained stalled since Aug. 21 Author of the article: By Jordan Gowling Published Sep 07, 2026 Last updated 29 minutes ago 3 minute read Join the conversation Prime Minister Mark Carney speaks about the trade dispute with the United States at the Davie Shipyard in Levis, Que., on Aug. 24, 2026. PHOTO BY ANDREJ IVANOV /AFP via Getty Images Article content OTTAWA — Canada’s retaliatory tariffs are set to take effect on Tuesday and with an American response almost inevitable, trade watchers are warning Canada should prepare itself for economic pain. Article content “We may be in an escalating war, and the question is who’s going to have the greater threshold for pain in this, and are Canadians ready for it because it’s going to be painful,” said Fen Osler Hampson, professor of International Affairs at Carleton University. Article content Article content Article content “I think it may be too early to go back to the table because the Americans will simply throw the same demands at us, and you know if they were unacceptable first-time around, are they going to be more the second time around?” said Hampson. Article content EXCLUSIVE NEWSLETTER Political Hack Political Hack gets at what’s really going on behind the scenes on Parliament Hill. Wednesdays and Fridays. Subscribe Now See all of our newsletters Article content Negotiations between Canadian and American officials have remained stalled since Aug. 21, after Prime Minister Mark Carney paused trade talks with the U.S. Article content As a result, a 50 per-cent U.S. tariff on nearly $28 billion worth of Canadian goods has come into effect, under Section 338 of the Tariff Act of 1930. In response, Carney intends to impose retaliatory tariffs ranging from 15 to 50 per cent on $27.6 billion worth of U.S. goods. Article content United States Trade Representative Jamieson Greer has said the U.S. has drawn up potential options to respond to Canada’s tariffs. He told Fox News last Thursday that negotiations remain stalled, but he has exchanged a few texts with the Canadian side. Article content Carney and Canada-U.S. Trade Minister Dominic LeBlanc have both expressed a willingness to return to the…