‘A body blow to North American competitiveness’

Several stakeholders are calling on the Canadian federal government to go back to the meeting room with the United States government and prevent further escalation of the trade conflict.

Alberta Premier Danielle Smith wants the resumption of talks to happen before Canada's retaliatory tariffs take effect.

The federal government confirmed Tuesday it will implement retaliatory tariffs starting Sept. 8 on a range of American exports, including steel, aluminum, smartphones and golf clubs. 

Ottawa also announced relief and support measures for businesses affected by the trade dispute, a $7.5-billion package that includes new loan programs and expanded employment insurance flexibility for workers.

Smith said she appreciates Ottawa's plan to support businesses and that her government is assessing whether provincial relief is also needed. However, she also said tariffs and counter-tariffs risk further escalating the trade conflict between Canada and the U.S.

"Alberta's government remains concerned that tariffs and counter-tariffs increase costs, disrupt supply chains, put pressure on businesses and workers, and ultimately risk escalation to even higher and broader tariffs that will impact even more Canadians," Smith said in a statement posted on social media platform X.

Smith has been a holdout among provincial and territorial leaders in backing Prime Minister Mark Carney's counter-tariff plan, The Canadian Press reported. The U.S. tariffs prompting Ottawa's response took effect over the weekend after Carney ended talks, citing terms from President Donald Trump's administration that he called unacceptable.

Uneven exposure across provinces

Meanwhile, Saskatchewan Premier Scott Moe said Tuesday the counter-tariffs will affect 11.3 per cent of his province's annual imports from the U.S., totalling roughly $1.5 billion in goods, according to the CP report. Moe said Ottawa was making the right decision despite the expected impact on Saskatchewan.

Business groups have warned the dispute threatens jobs and small exporters directly. In a statement, Canadian Chamber of Commerce president and CEO Candace Laing called the tariff escalation "a body blow to North American competitiveness" and said the impact for small exporters means owners are now examining their payrolls and staffing to determine what they can still afford.

“For a small Canadian exporter operating on tight margins, this isn’t an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford.

“Americans will see their costs go up, and Canadians will see customers, investment and small businesses disappear. From beer to benches, a diamond ring to molasses, plywood to winter jackets – this is no longer just 232s we are talking about.”

'Protect Canadian workers, jobs and industries'

In a separate press release, she has also urged Ottawa to keep relief measures simple and fast-moving so red tape does not undercut their effectiveness.

The Canadian Federation of Independent Business meanwhile cautioned that Canada's counter-tariffs could hurt domestic businesses more than the U.S. levies themselves, citing a similar pattern in 2025.

“While retaliatory tariffs are an understandable response from our government, the impact of this move also hits small firms hard,” Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), said. “While 20% of small firms export, over 50% import from the U.S. The burden of retaliatory tariffs ultimately affects consumers, but first to be hit are the small firms that import. Earlier rounds of Canadian retaliatory tariffs had a major negative impact on many small businesses.”

Separately, Bea Bruske, president of the Canadian Labour Congress, said: “Matching Trump’s new tariffs dollar-for-dollar is an important first step that labour supports. But Canada must be prepared to do more. We have leverage in energy, critical minerals, lumber, potash and other resources the United States depends on. We should be prepared to use it.”

She said that the retaliatory tariffs “is an important first step that labour supports,” but Canada “must be prepared to do more”. 

“We have leverage in energy, critical minerals, lumber, potash and other resources the United States depends on. We should be prepared to use it,” she said.

Bruske also called on Ottawa to “immediately put in place a comprehensive plan to protect Canadian workers, jobs and industries.” 

The collapse of Canada–US trade talks in the early hours of Aug. 22 set off a wave of alarm across Canadian business communities, with new analysis suggesting roughly 87,000 Canadian jobs could be at risk because of the new 50-per-cent tariffs on Canadian goods.