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Ontario Premier Doug Ford went on a media blitz across major US networks on August 25, urging President Donald Trump to dial down the hostilities and sit down for a proper negotiation. The same politician who recently told Trump to “kiss my ass” is now extending something closer to an olive branch.
The pivot comes days after the US slapped 50% tariffs on roughly $20-28B worth of Canadian imports, a move that effectively torched months of trade negotiations between the two countries. Canada’s response has been swift and predictably symmetrical: Prime Minister Mark Carney announced matching counter-tariffs, including a doubling of duties on US steel and aluminum to 50%, set to take effect September 8.
From insults to diplomacy
In earlier rounds of this dispute, Ford called Trump a “dictator” and a “loser.” Trump returned fire by labeling Ford a “flunky.” Now Ford is making the rounds on Bloomberg Television and CNN, essentially arguing that both sides need to stop the name-calling and start talking specifics. His core message: get the leaders in a room, hammer out something fair, and stop letting personal grudges dictate economic policy.
Ford isn’t exactly caving. He made clear that he still supports Canada’s retaliatory tariffs and repeated his position that “no deal is better than a bad deal” when it comes to protecting Ontario’s manufacturing base. The province is home to a massive chunk of Canada’s auto industry, steel production, and advanced manufacturing, all of which sit squarely in the crosshairs of Trump’s tariff regime.
What triggered the latest escalation
The current crisis traces back to the broader USMCA review process and follows a series of tariff disputes that began heating up in 2025. Recent negotiations between Washington and Ottawa collapsed without agreement, and the US moved quickly to impose the new 50% duties around August 22-23.
Canada’s retaliatory package targets sectors where it can inflict maximum political pain in the US. Steel and aluminum duties jumping to 50% will hit producers across the American Midwest and South. The September 8 effective date gives a narrow window for negotiations, but neither side appears to be blinking.
Ontario’s auto sector depends on parts crossing the border multiple times during assembly. A single car might cross the US-Canada border six or seven times before it rolls off the lot, and each crossing now carries the risk of compounding duties.
Markets and the manufacturing squeeze
Companies in the automotive, machinery, and raw materials sectors face the most direct exposure to the tariff standoff. The Canadian dollar has been fluctuating in response to each round of tariff news, creating uncertainty for traders with exposure to cross-border transactions. Regional equities tied to steel and aluminum production on both sides of the border face a particularly uncomfortable outlook if the September 8 counter-tariffs go into effect as scheduled.
Ford’s shift in tone suggests at least some political leaders recognize that the current trajectory leads somewhere nobody wants to go. Whether Trump is interested in meeting him halfway is another question entirely, and the September 8 deadline for Canada’s counter-tariffs will likely determine whether this de-escalation attempt gains traction.
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