Advisors face fresh inflation and growth uncertainty as Canada's dollar-for-dollar measures land with no talks scheduled
Tariffs of 15, 25, and 50 percent hit more than 700 American products at 12:01 am ET on Tuesday, with no negotiations scheduled to stop them.
The Prime Minister's Office confirmed to CBC News that no calls were booked between Prime Minister Mark Carney and US President Donald Trump on Monday, and that Canadian trade negotiators had no plans to return to the table before the deadline.
CBC News put the value of the covered goods at $27.6bn.
The New York Times each described the package as covering roughly US$20bn of American products, matching the dollar value of the 50 percent US tariffs that took effect on Canadian exports on August 22.
According to CBC News, the steepest rates fall on steel, dairy, and wood products, the same sectors carrying the heaviest US duties.
Bloomberg reported that Ottawa raises the import tax on many US steel items to 50 percent from 25 percent and extends tariffs to consumer goods including motorcycles, cosmetics, and cheese.
The Bank of Canada held its overnight rate at 2.25 percent on September 2, with the Bank Rate at 2.5 percent and the deposit rate at 2.20 percent.
Upside risks to inflation have increased while "new tariffs make growth prospects more uncertain," the central bank said in its decision, which set October 28 as the next scheduled announcement.
Tony Stillo and Michael Davenport of Oxford Economics estimate the combined effect of the US tariffs, Canadian retaliation, and related federal support programs will reduce output by about 0.3 percent against their baseline forecast, in a report cited by Bloomberg.
That estimate accounts only for measures already announced.
Employment has grown by an average of 3,400 people per month this year, Bloomberg reported, citing Statistics Canada data that also shows higher layoff rates in industries dependent on US demand for exports.
"If there's further retaliation from the Canadian side, of course, we're not going to just sit down and take that. Our view is, 'Don't retaliate,'" US Trade Representative Jamieson Greer told CBC News chief political correspondent Rosemary Barton, suggesting Washington might consider bans on Canadian products.
Trump announced after the talks collapsed that he would raise tariffs on autos to 50 percent from 25 percent and apply a 50 percent rate to auto parts, both effective January 1, Bloomberg reported, noting he has not taken formal steps to implement the levies.
Reuters reported Trump's declaration on Truth Social that Bombardier jets would no longer be allowed to sell in the United States unless the company manufactures there, writing "If they want our Market, they must build here, and stop treating America like a 'piggybank.'"
Bombardier told Reuters it spends more than $2.5bn with US suppliers each year.
Per Reuters, the White House did not immediately respond to a request for comment on how the action would be enforced against jets already approved by the US Federal Aviation Administration.
Carney told reporters his government is seeking a "durable" agreement, Bloomberg reported, quoting him as saying: "We're ready to sit down and strike that deal when the Americans are ready."
Ottawa has announced $7.5bn in supports for workers and businesses, on top of nearly $25bn in tariff aid implemented over the past 18 months, according to CBC News.
