The 50 percent tariffs imposed by President Trump on Canada this weekend could price Canadian companies out of the U.S. market and lead to significant job losses, economists warn. Up to 90,000 jobs could be lost, including those in industries not directly affected by tariffs, according to Trevor Tombe, a trade economist at the University of Calgary. Industries such as forestry are particularly vulnerable, facing additional levies on plywood, paper, and other wood products on top of existing softwood lumber tariffs. "We're getting hammered," said Derek Nighbor, president of the Forest Products Association of Canada, though he supports Mark Carney's decision to walk away from trade negotiations.

The tariffs, covering about $20 billion in trade, represent roughly 5.5 percent of Canada's total exports to the United States. While the overall economic impact may be limited due to exemptions on oil, gas, and minerals, the signal of a failed agreement raises concerns about persistent trade uncertainty. TD Securities noted that markets may view this as evidence that broader trade resolution remains elusive.

On Tuesday, Carney is expected to announce retaliatory tariffs. The collapse of trade talks prompted Trump to also threaten raising auto tariffs to 50 percent and extending the same rate to auto parts. Despite the relatively modest economic impact, the psychological and strategic implications for Canada-U.S. trade relations remain significant.