Businesses fear closure with no Canada-U.S. trade deal as industry reacts

The head of the Canadian Chamber of Commerce calls the breakdown in talks for a Canada-U.S. trade deal a “self-defeating” body blow for continental competitiveness.

Candance Laing, Canadian Chamber of Commerce president, says in a statement no deal means American costs will go up and some Canadian firms will close. 

Bea Bruske, president of the Canadian Labour Congress, said on social media that walking away from a bad deal “is the right choice for Canada.”

The United States imposed 50 per cent tariffs on a range of Canadian exports Saturday, after the two countries could not reach a new deal before a deadline imposed by President Donald Trump earlier in the week.

Prime Minister Mark Carney says he has suspended negotiations and directed Canadian negotiators to return to Ottawa, and he also announced Canada will retaliate with matching dollar-to-dollar tariffs.

Carney says in his statement that supports for Canadian businesses and workers will be announced in the coming days. 

This report by The Canadian Press was first published Aug. 22, 2026. 

— With files from Catherine Morrison in Ottawa and Kelly Malone in Washington

By David Baxter | Copyright 2026, The Canadian Press. All rights reserved.