Canada’s Prime Minister Mark Carney and U.S. President Donald Trump speak at the G7 working luncheon, during the G7 summit in Evian-les-Bains, France, on Tuesday, June 16, 2026. THE CANADIAN PRESS/Christopher Katsarov
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Aug 28, 2026 | 2:00 AM
The intensifying tariff war between Canada and the United States could permanently alter cross-border trade, signalling the potential end of an era of expanding economic ties between the countries, experts say.
New tariffs and the increasing unreliability of the U.S. as a trading partner is prompting many Canadian companies to seek out different markets and set up new trade deals, prominent U.S. investment strategist Peter Schiff said in an interview.
“To the extent that over the next few years other relationships are established, they may not be so easily unwound,” said Schiff, chief economist and global strategist at Euro Pacific Asset Management. “It could permanently impact the overall volume of trade.”
While profit-seeking companies will continue trading across the border when feasible, he said the more that businesses are forced to find new markets, the more attractive those markets will become.
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