CANADA'S DOLLAR-FOR-DOLLAR TARIFFS ON US GOODS HIT NEXT WEEK

🔴 Canada's "dollar for dollar" tariffs on U.S. goods take effect next week.

That is the state of play after trade talks between Washington and Ottawa collapsed last month, when negotiators failed to reach a deal before President Donald Trump's Aug. 22 deadline for new 50% tariffs on some $20 billion worth of Canadian imports.

CNBC reports that Commerce Secretary Howard Lutnick told Squawk Box the Canadians "blew up" a nearly complete deal "for political reasons only," saying Canada treated Trump "disrespectfully" and would change its tune after mid-October, once byelections are behind it.

Prime Minister Mark Carney answered from Thunder Bay, Ontario.

"I don't think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics," he said. He added that a mutually beneficial deal is still possible: "We're ready to sit down and strike that deal when the Americans are ready."

Trump was cooler. In a Truth Social post he wrote that it is "very good for Canadian Politicians like Prime Minister Carney" to make him "the enemy," until "their Economy collapses."

The two sides can't even agree on what broke it. Lutnick says Canada tried to add tariff relief on medium- and heavy-duty trucks hours before the deadline. Carney says the U.S. was always going to keep those trucks out and is now rewriting its own red lines. U.S. Trade Representative Jamieson Greer has denied Carney's claim that Canadian French-language requirements were a sticking point.

For now, the tariffs are the negotiation.

Who blinks first on trucks?

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