With trade talks between the United States and Canada falling apart, Americans and Canadians are bracing for the economic impact as leaders, including Ontario Premier Doug Ford, prepare for further fallout.
U.S. President Donald Trump announced that tariffs on Canadian cars, trucks, auto parts and steel will increase to 50% on Jan. 1, 2027. The announcement came after trade negotiations between the two countries broke down. Prime Minister Mark Carney has said Canada will respond with dollar-for-dollar tariffs beginning Sept. 8.
In the wake of the latest tariff threats, Ford addressed Canadians while supporting steelworkers in Hamilton. He argued that Ontario's steel industry could be leveraged in Canada's response to the Trump administration.
“Team Canada needs to stand united, stand up to this attack on our economy, use our leverage to protect our workers, and make clear to President Trump that Canada is not for sale,” Ford said.
Ford has supported Carney's decision to walk away from the latest U.S. trade proposals, saying Canada must be prepared to respond if Trump escalates the trade dispute.
“If President Trump escalates, Canada needs to be ready to do the same,” Ford said. “Everything needs to be on the table to create maximum impact, targeting deep red states and making sure that America's economy feels the pain.”
Ford also discussed the government's plans to support businesses affected by tariffs by expanding the Protect Ontario Financing Program.
“Ontario will immediately expand the program to businesses hit by President Trump's latest tariffs, including those producing electrical and mechanical equipment, plastic and paper products, packaging, furniture, beverages, including alcohol, and many more, so we can provide support where it's needed most and protect workers and businesses,” he said
The program, a provincial initiative aimed at strengthening Ontario's economy, provides up to $1 billion in financing to eligible businesses facing tariff-related challenges. Ontario has expanded the program to include additional businesses affected by the latest U.S. tariffs.
Ford said the program would also need federal backing to successfully aid applicants, but warned Canadians there would be no way to avoid the economic consequences of U.S. tariffs.
“We have to withstand the economic pain that will come with this fight,” Ford said. “Our government will be there, doing whatever we can to keep costs down, cut taxes, support workers and families, and protect Ontario jobs, to get through this fight.”
One day after Ford's address, Carney announced plans for reciprocal tariffs as trade tensions continued to rise. Trump then posted the latest in a series of threats and insults aimed at Canada and its leaders.
During early morning posts on Truth Social, Trump said the United States was considering renaming Lake Ontario “Lake America,” stating, “we don’t expect to doing much business with Ontario any longer.”
The comment follows previous statements by Trump, including calling Canadian leaders “nasty” and “clowns” and repeatedly referring to Canada as a potential 51st state.
The war of words between the leaders has intensified over the past week as trade talks repeatedly broke down.
The economic stakes are significant considering the integrated trade history the U.S. shares with Canada. Now both countries' economies are at risk unless leaders come to an agreement.
