Observer calls Trump’s latest tariffs ‘illegal and obviously desperate.’ Live trade war updates here.

The U.S. says it will charge a 50 per cent tariff on an array of Canadian goods, including some that are covered under the countries’ free trade agreement, in one month.

The White House claims the move is a response to unfair Canadian trade practices. That includes provincial bans on U.S. booze, which various premiers imposed months ago in response to American tariffs, as well as supply management on dairy and certain tariffs and quotas on cars.

Prime Minister Mark Carney says the 50 per cent tariffs violate the Canada-United States-Mexico Agreement (CUSMA).

‘Agreed to intensify negotiations’: Carney on talk with Trump

Speaking to reporters in Ottawa on Tuesday, Carney said he spoke with the U.S. president this morning, and that the two “agreed to intensify negotiations in the coming weeks.”

The prime minister categorized Trump’s latest tariff threat as “a series of trade actions against Canada in violation of our agreement, CUSMA, with the United States and Mexico.”

He also reiterated that Canada’s primary goal is to “focus on what we can control, building strength here at home, supporting each other, buying Canadian, and diversifying partnerships abroad.”

Will B.C. stock U.S. booze? ‘Not a chance in hell’

“There is not a chance in hell that U.S. alcohol is going back on the shelf in British Columbia,” Premier David Eby told reporters Tuesday morning.

Most provinces in Canada, excluding Alberta and Saskatchewan, have stopped stocking U.S. booze – a retaliation measure specifically mentioned as justification for Trump’s latest round of tariffs.

Speaking from P.E.I. ahead of a premiers meeting, Eby characterized Trump’s new levies as part of “an increasingly desperate and flailing approach to relationships with our country.” But, the move will hurt British Columbian families, he said. Especially those who make their living in wood manufacturing and distilling.

With that in mind, he added, “I can’t help but feel prouder to be a Canadian right now that our integrity is intact.

“We know who our friends are.”

Luca Caruso-Moro, CTV News journalist

Americans in ‘a very lonely place:’ Eby

“I feel sorry for Americans,” said B.C. Premier David Eby.

“If you can’t be friends with Canada, then you almost certainly do not have a friend anywhere in the world.

“And that is a very lonely place to be.”

Canada likes to talk, ‘Not to actually change’ things: Greer

“The Canadians have always been ready to engage, if engagement means ‘talking’ and ‘meeting,’” said U.S. Trade Representative Jamieson Greer on CNBC this morning.

“Not to actually change these things,” he added, accusing Canada of dragging its feet to address U.S. trade concerns.

Earlier this month, Greer refused to give Canada “credit” for dropping its digital services tax in a bid to resume suspended trade talks.

During his Tuesday interview, Greer took note of Carney’s “firm but moderate” letter and reiterated American negotiators want to bring more manufacturing to the U.S., even if that means companies relocate from Canada.

“I think you have to understand that the American people don’t want offshoring,” he said.

Tariffs to impact $28B in Canadian goods

Economists weighing in on U.S. President Donald Trump’s latest round of tariffs suggest the new duties will hit around five per cent of Canada’s exports to the United States.

Trump signed a series of executive orders Monday that would impose a 50 per cent tariff on a range of goods, from honey to hockey sticks, with no exemptions under the North American free trade pact.

BMO senior economist Robert Kavcic says in a note to clients that the proposed tariffs would cover roughly $28-billion worth of annual Canadian exports to the United States.

He says that number is digestible for the entire economy but some specific businesses and industries will be hit extremely hard if the tariffs come into effect as planned on Aug. 19.

CIBC deputy chief economist Benjamin Tal also says in a note that he sees the new tariffs as a sector-specific story for the economy, not a sweeping threat.

Ford: ‘We’ll never back down’

Ontario Premier Doug Ford, who has called on Canada to retaliate again with dollar-for-dollar tariffs, promised he and other premiers won’t “roll over.”

“As premiers assemble in P.E.I. this week, Team Canada is coming together and there’s never been a better time to do so. Together, we’ll stand united. We’ll never back down. We’ll never roll over,” he said in a statement posted on X.

Toronto Mayor Olivia Chow says she has reassembled her economic action team, which she initially introduced last year when the trade war began.

The team, composed of leaders in business and labour, produced a 10-point action plan to combat Trump’s tariffs. The tentpoles of that plan include changes to the city’s procurement practices, property tax deferrals for affected businesses, and a push to shop locally.

“I will call them back together and look at what else we can do,” Chow said at an unrelated news conference Tuesday.

Beyond reuniting the economic action team, Chow said she will take a wait-and-see approach before the tariffs are brought into effect in 30 days.

Phil Tsekouras, CTVNewsToronto.ca and CP24.com journalist

Moe expects Carney to call for U.S. booze return

Saskatchewan Premier Scott Moe says he expects the federal government to ask premiers to return U.S. alcohol products to provincial liquor store shelves.

“I expect that ask to be coming,” he said during a scrum with reporters ahead of a meeting with other premiers.

‘Illegal’ and ‘desperate’: Reid

CTV News political commentator Scott Reid called Washington’s move “irrational, illegal and obviously desperate.”

“This is a political play. And it becomes for Canada a step-up or stand-down moment,” said Reid, who also served as director of communications for former Liberal prime minister Paul Martin.

Reid added Ontario Premier Doug Ford’s statement, calling on Ottawa to impose dollar-for-dollar tariffs in response, struck the right tone.

“This is ridiculous and we’re not going to be treated this way,” Reid said.

What Canadian goods will be tariffed?

The White House published three separate lists of Canadian products that will face the new 50 per cent tariff in 30 days.

With most provinces in Canada, excluding Alberta and Saskatchewan, currently banning U.S. alcohol on store shelves, the Trump administration now says it will retaliate against a wide range of alcohol products, such as beer made from malt and sparkling wine.

U.S. President Donald Trump has long pushed back against Canada’s supply management system, which co-ordinates production and maintains import controls for dairy, poultry and eggs to set stable prices for both farmers and consumers.

In response, the U.S. says it will now impose new tariffs on a variety of dairy products, some blended syrup and molasses products, and non-alcoholic beer.

The U.S. is also retaliating against Canada’s 25 per cent tariff on all U.S.-made vehicles entering Canada that are non-compliant with CUSMA. Those tariffs, which came into effect in April 2025, were in response to the Americans imposing a global 25 per cent tariff on automobiles and key auto parts imported into the U.S.

Now, the Trump administration says it will impose those new 50 per cent levies on items like plywood, golf equipment, ice skates, video game consoles, cement, clothing and even toilet paper. The list also includes some wood items.

Stephanie Ha, CTV News journalist. Read the full story here.

Canada’s tariff response needs be ‘measured,’ expert warns

Canada needs to take a “measured” approach to retaliating against the latest tariffs announced by the Trump administration, according to Western University Ivey Business School fellow Mahmood Nanji.

“We’ve seen a number of premiers come out, including [Ontario] Premier [Doug] Ford, who says we should have more retaliatory measures dollar-for-dollar,” Nanji told CTV’s Your Morning from P.E.I. Tuesday. “I’m not quite sure that’s the right policy at the moment.”

Such retaliation, Nanji says, would just lead to further tariff action from the U.S. administration.

“I think that every time you increase one, and he increases another, that just damages your economy even further,” explained Nanji, who previously served as Ontario’s associate deputy minister of finance.

“I think there’s a limit to how far you can go. I’m not suggesting that you don’t retaliate, I’m just saying that I think you need to be very measured about this.”

Daniel Otis, CTVNews.ca journalist

A turning point in negotiations: economist

In an interview with CP24 Tuesday morning, Carleton University business Prof. Ian Lee said he believes this latest salvo in Trump’s trade war represents a turning point for Canadian negotiations.

“He’s really putting a squeeze on us,” Lee said, suggesting that previous efforts to “somehow defeat” the largest economy on earth should be replaced by concessions.

“We have to decide what do we want to give up to get a deal.”

Lee said that Canada’s supply management in the dairy and egg sector may be the best place to start, given Trump’s previous criticisms of the industry.

“That should be at the top of the list that we are willing to throw under the bus because the Americans hate supply management. So that’s we’ve got to compromise and give up some things to get what we want from Trump,” he said.

Prime Minister Mark Carney’s government has been adamant that Canada’s supply management will not be on the negotiating table.

Canadians don’t trust U.S. on trade

Polling suggests Canadians do not view the U.S. as a reliable trading partner. A recent poll found only 35 per cent of Canadians said the U.S. is a reliable partner, down from 83 per cent from a similar poll conducted in 2022.

Shortly after the White House revealed its plans to tariff even more Canadian goods, Carney published the following letter on X:

“Today, the United States administration announced its intention to impose a new 50% tariff on a significant number of Canadian goods.

“This is the latest in a series of unilateral U.S. trade actions that began with the U.S. imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement between Canada, the United States, and Mexico.

“These include tariffs on the Canadian auto sector, in violation of CUSMA. Canada, as is its right, has merely matched those measures.

“More broadly, in response to these measures and threats to Canadian sovereignty, provinces, territories, and Canadians from coast to coast have stood together, taking the necessary actions to support our economy and defend our workers, farmers, businesses, and families.

“Recognising that the U.S. has been transforming all of its trade relationships, including those covered under CUSMA, over the past 18 months, Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernise CUSMA. We stand ready to intensify those discussions in the coming weeks.

“Canada believes in the benefits of free and fair trade, as evidenced by our new government signing more than 20 new economic and security partnerships. This trade dispute has raised costs for families, particularly in the U.S. Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.

“In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families.”