Canadian business leaders and federal officials spent Saturday assessing the fallout from President Donald Trump's threat to impose a 50% tariff on Canadian goods, warning of disruption to cross-border supply chains.

The threat has intensified pressure on stalled trade negotiations between Ottawa and Washington. A Surrey, British Columbia, Member of Parliament said this week that Canada was "not dependent" on the United States and could redirect trade toward other partners.

Prime Minister Mark Carney's government has repeatedly downplayed the immediate economic impact, while pledging retaliatory measures if tariffs proceed. Export-heavy sectors, including automotive parts, aluminium, softwood lumber and energy, face the greatest exposure, according to the Business Council of Canada.

Industry groups have urged both governments to return to the negotiating table before any levies take effect, citing deeply integrated North American manufacturing networks. The Canadian dollar came under pressure against the US dollar in the days surrounding the threat.

Analysts at Canadian banks including RBC and BMO cautioned that a prolonged dispute could weigh on growth. Ottawa has signalled it is preparing contingency plans, including support for affected industries and expanded trade ties with Europe and Asia.

A spokesperson for Canada's Department of Finance said the government remained committed to defending Canadian workers and businesses while pursuing a negotiated outcome with Washington.