Economy

Canada will apply counter-tariffs at rates of 15%, 25%, and 50% on 648 U.S. product lines beginning September 8, 2026, matching U.S. measures dollar for dollar following the August 22 U.S. tariff implementation. The government has paired the action with a C$7.5 billion support package spanning SME loans, worker retraining, and expanded large-enterprise credit facilities. Bilateral trade negotiations remain suspended after Prime Minister Carney recalled Canadian negotiators on August 21, citing late U.S. terms as unfair and uneconomic.

The FOMC meets September 15–16, 2026, with the federal-funds rate holding at 3.5–3.75% following a 9–3 July vote, three dissenters having favored a 25-basis-point increase. Chairman Kevin Warsh, speaking at Jackson Hole on August 28, cited PCE inflation at 3.7% year-over-year and 4.1% on a six-month basis against the Fed's 2% target, while declining to outline a concrete rate path. The September meeting will produce the next dot plot under Warsh's chairmanship, with key data including August CPI and the Employment Situation releasing before the decision.