Trump's tariff threat could impact Canadian economy but may be negotiation tactic, experts say

VANCOUVER, British Columbia (AP) — The U.S. threat of 50% tariffs on Canadian goods will have a ripple effect on the country’s economy but also could be a negotiation tactic by the U.S. administration, experts say.

The new tariffs, announced by U.S. President Donald Trump on Monday, are scheduled to come into effect Aug. 19. They cover a wide range of goods, including honey, liquor, cement, dairy products, some wood products, hockey sticks, essential oils, perfumes, candles, dog leashes and wigs.

They exclude energy products, potash, fish and critical minerals, but would include goods previously protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That 2020 trade pact was not renewed by the U.S., triggering a new set of negotiations that could run until 2036.

Prince Edward Island Premier Rob Lantz said the tariffs create uncertainty.

“We’re living in a time when uncertainty is the new norm,” Lantz said Wednesday following a meeting of the country’s premiers and territorial leaders in the province's capital, Charlottetown.

Randall Bartlett, deputy chief economist with Desjardins, one of Canada’s largest financial institutions, said the tariffs will impact about $28 billion Canadian ($19.8 billion) worth of annual Canadian exports to the United States. That’s about 5% of what the U.S. imports from Canada each year.

They have the potential to shave two to three tenths of a percent off growth in 2026 and 2027 in Canada, Bartlett said, although he said he didn't expect a recession.

"We’re expecting it to keep more investment on the sidelines (and) probably suppress hiring. That weighs on consumer activity and residential investment as well,” Bartlett said.

Fen Osler Hampson, a professor of international affairs at Carleton University in Ottawa, said the products hit by the tariffs are items U.S. consumers can decide not to purchase if prices rise.

Losing U.S. customers could lead to layoffs for companies that employ 10 to 200 workers that are the “backbone of the Canadian economy."

“That does have ripple effects in an economy because if people are out of a job, they’re not going to be spending," said Hampson, who is co-chair of the Expert Group on Canada-U.S. Relations.

Dennis Barby, president and CEO of Canadian Manufacturers and Exporters, said the tariffs would inflict serious damage on manufacturers, workers and consumers on both sides of the border.

“These tariffs will raise costs, disrupt production, and make North America less competitive at a time when we should be strengthening our shared industrial base,” Barby said in a release.

British Columbia Premier David Eby said it’s frustrating the U.S. is proposing tariffs on some Canadian goods while also looking to invest in Canadian mines to secure metals and minerals.

“You can’t have a country on one hand attacking one group of families and workers while hoping to have access to the resources in Canada that the rest of the world wants,” said Eby, who added that Canada should limit access to the resources the U.S. wants if its stance remains.

Experts Bartlett and Hampson said the tariffs could be a negotiation tactic, and may not come into effect. Still, Canadian trade negotiators should be cautious moving forward, they said.

Hampson warned against retaliatory tariffs or reducing oil or electricity shipment to the U.S.

“You don’t want to poke the bear,” he said. “You get into that kind of war, we’re going to lose. We’re the smaller economy. They can absorb a hit much more than we can.”

Hampson said the tariffs could reflect the tense relationship between Trump and Canadian Prime Minister Mark Carney, which has soured since Carney criticized his counterpart at the World Economic Forum in Davos.

On Tuesday, Carney said he and Trump have agreed to intensify trade talks.

Canada Prime Minister Mark Carney makes a statement outside the Office of the Prime Minister and Privy Council in Ottawa, on Tuesday, July 21, 2026. (Justin Tang/The Canadian Press via AP)

Canada Prime Minister Mark Carney makes a statement outside the Office of the Prime Minister and Privy Council in Ottawa, on Tuesday, July 21, 2026.(Justin Tang/The Canadian Press via AP)

Prime Minister Mark Carney makes a statement outside the Office of the Prime Minister and Privy Council in Ottawa, on Tuesday, July 21, 2026. (Justin Tang/The Canadian Press via AP)

FILE - President Donald Trump speaks with Canadian Prime Minister Mark Carney, right, at a working lunch with leaders of G7 and the Middle East in Evian-les-Bains, France, Tuesday, June 16, 2026. (Evelyn Hockstein/Pool Photo via AP,File)

CHARLOTTE, N.C. (AP) — The Carolina Panthers will open the regular season without both starting offensive tackles.

But that hasn't dampened general manager Dan Morgan's enthusiasm or confidence.

He thinks the team has the depth to stay competitive until they return.

Carolina is looking to build off last season's momentum when the franchise snapped a seven-year playoff drought and won the NFC South — albeit with a losing record (8-9).

Morgan said things are headed in the right direction after years of struggles.

“If you look at our roster, I think our depth has gotten a lot better, our talent has gotten better and the culture in the locker room and in the building is in a really good place, " Morgan said Wednesday as the team's veteran players reported to training camp.

That depth will be tested early on.

Left tackle Ickey Ekwonu is still recovering from a ruptured patellar tendon he sustained in Carolina's 34-31 wild-card loss to the Los Angeles Rams in January. The No. 6 overall pick in the draft in 2022 is expected to miss multiple games, but Morgan said he's optimistic he'll be back at some point this season.

On Tuesday, Carolina ruled out right tackle Taylor Moton for the start of the season after doctors discovered a blood clot in his lung last month. He could miss a few games, but the team's bigger concern is his overall health following the scare.

In the meantime, the Panthers have a huge void up front.

Moton and Ekwonu have started a combined 192 games. Moton has been a reliable starter for nine seasons; Ekwonu four.

So what happens next?

The plans are to start the season with veteran free agent pickup Rasheed Walker from Green Bay at left tackle and first-round draft pick Monroe Freeling out of Georgia on the other side, according to Morgan.

The Panthers had planned to bring along Freeling a little slower, but Moton's injury changed all that.

The Panthers also re-signed versatile offensive lineman Brady Christensen, who can play both tackle spots.

“I think that is why depth, it just matters so much in this league," Morgan said. “Drafting Monroe and taking the best player available (at No. 19), it happened to be a tackle, has worked out really well for us. ... We feel really good about him, We are confident in him and I know he is going to attack it and be out there competing.”

Morgan expects Moton will serve as a valuable mentor for Freeling while he works his way back.

“I think we’ll be covered there,” Morgan said. “I know T-Mo will definitely support Monroe there at right tackle and teach him all he knows. So, yeah, we feel good about it.”

There is a noticeable change in confidence in Charlotte.

Morgan has been cautious about making any proclamations regarding how long it would take for the Panthers to return to being a consistent playoff contender after undertaking a rebuild in 2024. For the past two years he's preached patience, insisting the team would not rush things and saying are no shortcuts to success.

On Wednesday, Morgan raised the bar on expectations for this upcoming season.

“We’re never going to shy away from expectations,” Morgan said. “We have high expectations ourselves, in the locker room, in the building. Our ultimate goal is to win a Super Bowl, to bring a championship here to the Carolinas, in this city, and in this building, a Super Bowl trophy.”

The team placed Ekwonu and defensive tackle Tershawn Wharton on the physically unable to perform list, while defensive tackle Bobby Brown and two-time Pro Bowl cornerback Jaycee Horn are on the non-football injury list. Moton is on the non-football illness list.

Morgan said Horn's absence should be “a matter of days, so nothing long term there" after he cut his foot while running without shoes.

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FILE - Carolina Panthers general manager Dan Morgan looks on before an NFL football game between the Carolina Panthers and the New Orleans Saints on Nov. 9, 2025, in Charlotte, N.C. (AP Photo/Jacob Kupferman, File)