Good morning. “You are at war when you get attacked. We got attacked,” the Prime Minister said on Saturday. More on the trade file below, along with investors betting on Canadian banks and a new study about online gambling trends.

After a trade deal fell apart late Friday at the eleventh hour, Prime Minister Mark Carney has promised “dollar-for-dollar” retaliation in the form of tariffs against American exports to Canada. The federal government is expected this week to lay out its tariff relief plan and, in the meantime, provinces brace for economic impact. Here’s what you need to know now that new tariffs are in effect.

The details: Carney said that the deal fell apart because the U.S. wanted to restrict Canada’s ability to make trade deals with other countries and attempted to make a last-minute change to the agreement that would have been exceptionally punitive for Canadian exports of trucks.

Sticking points: A source said that Ottawa’s negotiators also rejected an unexpected demand to roll back requirements that U.S. streaming platforms, including Netflix and Amazon, promote Canadian film, TV and music, including in French. “It was mostly to ensure that there is more content from the U.S. and less Canadian content available on these platforms,” the source said. “This is a red line.”

Sovereignty talk: Donald Trump is reviving his annexationist rhetoric, and some Canadians are taking that personally. The U.S. President posted to Truth Social shortly after 1 a.m. on Sunday saying, “Canada wants the benefits of being a State, without being one!!!” Carney has promised support for businesses for as long as it takes or “in other words, beyond the life of this U.S. administration.”

Up next: Retaliatory tariffs are set to take effect on Sept. 8. “We’ve got the reserves. We’ve got resilience. We’ve got the plan. We’ve got the focus,” said Carney. Canadian business leaders in the meantime have been left in a precarious state of limbo, as the uncertainty that has long paralyzed their investment decisions is set to continue.

Keep reading

• Tony Keller: No deal was better than this deal. Mark Carney was right to call Donald Trump’s bluff
• Campbell Clark: The trade cold war suddenly turns hot again
• David Shribman: Americans, too, are wondering why the U.S. and Canada are embroiled in a trade war

Online gambling has “significantly increased” among Ontario teenagers, with one in eight students gambling online during the last school year, according to a report released today from Toronto’s Centre for Addiction and Mental Health. The survey included more than 11,000 students enrolled in Grades 7 to 12 across the province.

The numbers: Compared to the last survey two years ago, the share of students who reported gambling online grew to 12 per cent from 8 per cent – a 50-per-cent jump. Across Ontario, one in five students is now engaging in some form of gambling, either online or off.

Both investors and analysts are setting a high bar for Canadian bank profits, bolstered by strong capital markets activity and rising loan demand. Canadian bank stocks have surged 24 per cent this year in the lead-up to posting third-quarter results this week.

Up next: On Tuesday, Bank of Nova Scotia and Bank of Montreal will report earnings for the three months ended July 30. National Bank will post results on Wednesday. Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce will wrap up the week with earnings releases on Thursday.

The Ulukhaktok Golf Course was built on the tundra. It is short (a par-33 of 1,992 yards) but deceptively tricky: The greens are tiny and the rocks send balls in all directions. At this year’s 40th Billy Joss Open, 25 players – mostly locals – arrive on ATVs, golf clubs bungee-strapped to front panels. Along with ball-stealing ravens and 24-hour daylight, the world’s most northern course is unlike anything you’ve seen before.

The people: Ulukhaktok (pronounced ooh-lock-hack-tock) is an Inuvialuit community of 450 people in the High Arctic of the Northwest Territories. A feast happens each tournament day, run by elders and volunteers. While frying arctic char and bannock, they dole out knowledge of the land and explain how food is shared.

Elsewhere: It’s an exciting time in Canadian golf – here are