US corporations urge talks as Canada-US trade dispute escalates

The escalating tariff dispute between the United States and Canada is fueling fears of a damaging trade war between the neighboring nations. Richard Fontaine, head of the Center for a New American Security, warned on X that if Ottawa retaliates with its own tariffs, it could trigger a costly spiral of retaliatory measures.

A coalition of influential US corporations, represented by the Business Roundtable, has called for new negotiations between Washington and Ottawa. The group, comprising leaders from about 200 major companies, stated on Saturday that the new tariffs threaten to significantly increase costs for US businesses and will also impact consumers.

Fontaine noted that the two countries are already engaged in a trade war. He observed that Canada's government has learned from President Donald Trump's approach, concluding that a more confrontational stance is more effective than concessions. He cited Europe as a negative example in this context.

Negotiators from both nations worked late into Saturday in an attempt to reach an agreement and avert the tariffs announced by Trump in July. Trump had imposed 50 percent tariffs on various products, including hockey sticks, furniture, and wine. Canadian Prime Minister Mark Carney announced retaliatory tariffs, set to take effect on September 8. However, US officials indicated that no new talks are planned at this time.

Doug Ford, the premier of Ontario, Canada's most populous province, praised Carney's decision not to accept what he called a "bad deal" with the US. Ford told CBC that industry leaders had rejected the US offer. He characterized Trump as someone who would "steal your lunch money on day one, steal the hat off your head on day two, and steal your running shoes on day three."