Good morning. Provincial leaders are thinking beyond alcohol when it comes to countertariffs. More on that below, along with flash flooding in Nepal and Meta’s social media settlement.

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TOP STORIES

Tracking Canada’s trade response

Saskatchewan and Alberta fiercely rejected any suggestion that Ottawa should apply export levies on natural resources like potash and oil in retaliation for the United States’ new tariffs on Canadian goods. Premier Scott Moe will finally impose a reciprocal tax in Saskatchewan on American alcohol. Danielle Smith, however, does not have immediate plans to do the same, stating only that she would consider suggestions. Unlike the rest of the country, the two provinces have previously not banned U.S. liquor.

Markets up: Meanwhile, the Canadian stock market largely shrugged off trade war news thanks to the strength of financials, energy, and materials, which have each outperformed the total index’s 30 per cent gain over the past year. The Canadian benchmark is expected to outperform its U.S. counterpart for the second year in a row.

Trickle down: As U.S. businesses brace for long-term impacts of Canada’s countertariffs, many are raising concerns that their Canadian customers could permanently turn their supply chains away from America. However, Canada’s tough response to Trump is winning fans in China, writes foreign correspondent James Griffiths.

Up next: Mark Carney will address the EU Parliament next month in Strasbourg, France, as the Prime Minister makes efforts to expand Canada’s ties with other partners. He will also attend the European Union’s annual State of the Union address.

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A drone view shows mud covering properties following a flash flood at Trishuli in Nuwakot district, Nepal, Aug. 26.Stringer/Reuters

Canadians missing after flash floods at Himalayan border

Officials in Nepal say at least 25 people from Canada are missing after flash floods in a border area of Nepal and China on Wednesday. The death toll continues to rise and some 1,500 people are still missing.

On the ground: Nepal’s steep valleys are economic lifelines and travel corridors but precarious ones when disaster strikes. Climate experts at the Kathmandu-based International Centre for Integrated Mountain Development said an avalanche from a glacier likely caused Wednesday’s flash flood.

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Media gathers outside the courthouse to hear remarks from Victoria Hinks, whose daughter died in a case that prosecutors allege was related to social media use.Heather Diehl/Getty Images

Meta to pay $17-billion to settle social media harms lawsuit

Tech giant Meta agreed to pay US$17-billion as part of a landmark legal settlement in a trial over youth social media addiction and settled claims filed by 47 states. Meta said it will add stronger child-safety measures to its Facebook and Instagram platforms in the U.S.

What next: Under the proposed settlement, Meta agreed to adopt a series of safety features, including a “hard cap” on daily time limits and pauses for children using Instagram and Facebook. The company urged rivals TikTok and YouTube to adopt similar measures.

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Learning the science of making the perfect sandwich.Illustration by Wenting Li

The science of making the perfect sandwich

We asked experts with years of experience making, eating and analyzing sandwiches, to share their tips on how to build them better. Some tips were straightforward: how meat is stacked, the way greens are seasoned and the order they are placed can change the taste. But sandwich aficionado Helen Rosner believes that air (yes, air) is the most important ingredient.

From readers: From turkey kimchi melts to Montreal smoked meat, we’ve rounded up the best sammies in the country, according to readers and Globe staff.

For the soul: Try this hot cod sando from Canadian celebrity chef and cookbook author Bob Blumer.

The Take

Donald Trump is taking on the look of a Putin of the West – a smaller version, in that his assault on his neighbouring democracy is mainly economic. So far.

— Lawrence Martin, Public affairs columnist

Canada’s response to Donald Trump is a nation-defining moment, writes Lawrence Martin.

The Shot

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Dolphin “Echo” is transported by a group of experts from Marineland and aquariums from Spain onto a truck via a sling in Niagara Falls, Ont., Aug. 26.Carlos Osorio/The Canadian Press

Canada’s last captive dolphins have left Marineland for a new home in Spain. But staff were devastated to learn of the death of a beluga recently relocated to a Chicago aquarium.

The Wrap

What else we’re following

In memoriam: Tim Curry, the British actor who pranced to movie fame in The Rocky Horror Picture Show, has died at the age of 80.

At home: Quebec Premier Christine Fréchette is set to meet with the province’s lieutenant-governor, paving the way for the start of the election campaign.

Abroad: Prince Harry and his family relocated back to Britain six years after quitting royal duties and moving to the U.S.

In the sky: People in eastern and central Canada with a clear view will be able to see a near-total eclipse of the moon tonight.

Chips: Nvidia’s quarterly revenue more than doubled and the chipmaker forecast third-quarter revenue above Wall Street estimates.

Cells: Apple’s next iPhone launch is on Sept. 9, when the company is expected to potentially release its long-awaited foldable phone.