Canada's new tariffs on the United States come into effect today, with a countermeasure list involving $28 billion worth of US goods

The US Canada relationship is experiencing a rare tense situation in decades. In response to the 50% tariff imposed by the United States, the Canadian government has announced tariffs on $28 billion worth of goods imported from the United States, including steel, aluminum, textiles, stoves, and hundreds of other categories, starting from September 8th. Just two days before the Ottawa counter tariffs came into effect, US President Trump harshly criticized Canada's trade policy and called Canada's exchange rate with the US "unacceptable". External concerns about the escalation of trade conflicts between the two sides have intensified.

The negotiation deadlock remains unresolved

According to the Canadian newspaper The Globe and Mail, as of September 6th local time, negotiations between Canadian and American officials are still in a stalemate. Ottawa stated that there have been no formal talks between the two sides to avoid the implementation of new retaliatory tariff measures.

Prior to the implementation of US tariff measures, Canadian and US officials held almost daily talks in an attempt to reach an agreement, avoid new tariffs, and reduce other tariffs previously implemented by the White House. But this time, there was no situation where both sides intensified negotiations at the last minute to avoid additional economic losses.

The office of Canadian Finance Minister Francois Philippe stated that Canada's anti tariff plan remains unchanged and will take effect on the 8th as originally planned.

Recently, Trump posted on social media that a trade war between the two countries would lead to the collapse of the Canadian economy. He warned that the consequences would be "more serious than what has happened to Canadian politicians before. Let's wait and see

In the past few weeks, Canadian Prime Minister Carney has repeatedly stated that Canada will only return to the negotiating table if the United States changes its attitude. On September 1st, Carney said, "When Americans stop making emojis, stop mocking, stop trying to be tough, and start serious discussions, we can have real dialogue

The tough stance of the Carney government has also gained domestic public support. The Canadian television news network recently cited the survey results of Canadian polling firm Nanos Research, stating that 75% of Canadians support the government's rejection of the trade agreement previously reached with the United States, while another 10% say they are "somewhat supportive". It is worth noting that the Canadian public is not unaware of the costs of a trade war. According to the survey, about 2/3 of the respondents are concerned that tariffs will increase their personal living costs, but about 70% are still willing to accept the cost of rising commodity prices.

Canada accelerates expansion into non US markets

While seeking domestic support, Canada is also looking for ways to reduce its dependence on the US market.

According to data from Statistics Canada, Canada's exports to markets outside the United States increased by 7.4% in July, achieving growth for the third consecutive month and reaching a record high of 25.6 billion Canadian dollars.

The Netherlands, China, and Germany are the main markets driving this growth, with Canada increasing its exports of iron ore, nuclear fuel, and crude oil to the Netherlands, multiple products to China, and copper ore to Germany. It is worth noting that Canada's exports of goods to the European Union increased by 31.3%, which is one of the highest monthly growth rates on record. The Canadian government has also proposed to double its exports to non US markets by 2035.

The change in trade direction is also being transmitted to the Canadian business level. According to a recent report by Reuters, Chapman Ice Cream, Canada's largest independent ice cream manufacturer, stated that despite being affected by the latest tariffs, its summer sales this year still achieved one of the best performances in recent years.

At the same time, this company has also adjusted its raw material procurement direction. The head of the company stated that in recent months, the company has ended its partnerships with nine long-term American suppliers and started purchasing raw materials such as almonds and cherries from Australia and Chile.

According to the Financial Times, some Canadian companies have also begun to seek new markets outside the United States in industries such as defense textiles and manufacturing. Canadian clothing manufacturer Wuxly stated that the company is benefiting from increased market interest in locally manufactured defense textiles and is increasing its efforts to expand into the European market. The company exported over 250000 Canadian made products to the European Union last year, and this number is expected to increase by 2026.

According to analysis by Canadian Radio International, Canada has certain advantages in mineral resources and the ability to put pressure on the United States, but the cost of doing so is equally high. Some economists believe that instead of taking measures that would harm the Canadian economy in the short and long term, Canada should focus more on compensating for the impact of the shrinking US market by expanding overseas trade and promoting trade diversification.

The United States: respond by Wednesday at the latest

As Canada's countermeasures are about to be implemented, the US government has also issued a warning that if Canada implements retaliatory tariffs as scheduled on Tuesday, the US will "counter Canada's countermeasures".

A source familiar with internal discussions within the White House said that US officials hope to respond by Wednesday at the latest. According to reports, the Trump administration is considering banning the import of Canadian alcoholic beverages, dairy products, and possibly even steel products. Sources also said that some people around Trump advocate for stricter measures, but the specific content is currently unknown.

In the United States, Democratic Congressman Harley Stevens criticized Trump's "capricious" tariff war against Canada, stating that her hometown of Michigan is bearing most of the economic impact of the trade dispute.

They are really exhausted, "Stevens said on Bloomberg Television's" Bloomberg Weekend "program. Due to the uncertainty of employment prospects, we have already paid a price economically; at the same time, investment has also begun to decrease, and Michigan has lost billions of dollars in investment