US imposes 50 percent tariffs on $20bn in Canadian goods after talks fail
https://www.aljazeera.com/news/2026/8/22/us-imposes-50-tariffs-on-20bn-worth-of-canadian-goods-after-talks-fail
US imposes 50 percent tariffs on $20bn in Canadian goods after talks fail
Canadian Prime Minister Mark Carney says Ottawa will impose retaliatory tariffs ‘dollar for dollar’ after trade talks with the US fail.

The United States has imposed 50 percent tariffs on about $20bn worth of Canadian goods after trade negotiators from the two countries failed to finalise a trade deal despite three days of talks in Washington, DC.
With a deadline imposed by US President Donald Trump expiring at 12:01am Eastern Time (04:01 GMT) on Saturday, US and Canadian officials made clear that an agreement had not been reached.
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Canadian Prime Minister Mark Carney said his country would match the new tariffs “dollar for dollar”.
“In recent weeks, we made important progress toward improving Canada’s position as having the best deal in the world with the US,” said Carney in a statement. “However, that progress has not been enough to meet our objectives for Canadians.”
Carney outlined what his government would do to protect Canadians from the impact of the trade war, saying that it would introduce new measures to support workers and businesses.
His government’s retaliatory measures, meanwhile, would target US exports of steel, dairy products, appliances, agricultural machinery, paper and electronics.
In a speech later in the day, Carney suggested that last-minute changes at the bargaining table had prompted him to recall his negotiators to Ottawa.
“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada and called into question the reliability of any deal,” he said. “In short, they asked too much and they offered too little.”
He also suggested the US side attempted to restrict Canada’s ability to forge trade deals with other countries, in violation of its sovereignty.
US Trade Representative Jamieson Greer, however, pinned the blame on Canada, saying that it was “a missed opportunity for Canada to partner with the United States”.
“Canada declined to finalise the trade deal under the terms agreed earlier this week,” Greer said. “Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days.”
The tariffs will hit about 5 percent of Canadian exports to the US, including electronics, industrial machinery and dairy products, adding to pre-existing US tariffs on steel, lumber and autos.
Trump imposed tariffs on key imports from Canada early in his second term last year, prompting Ottawa to retaliate with a suite of countermeasures.
The two countries have gone back and forth ever since, with Trump periodically introducing new tariff threats.
The Trump administration had announced the tariffs in July after the US president accused Canada of “discriminatory treatment of American products”.
But Trump told reporters on Friday that he expected a deal with Canada could be reached – something that ultimately did not prove to be correct, for now.
The tariffs could hurt many Canadian businesses exporting affected goods to the US.
“Tariffs of 50 percent would effectively price hundreds of Canadian goods out of the US market,” Julian Karaguesian, a lecturer and trade expert at McGill University in Montreal, told Al Jazeera earlier this week.
But experts warn that the increased import taxes on Canadian goods could also prompt a backlash from US consumers who might see price increases as well.
Democrats also slammed the Trump administration in the hours after the tariff negotiations fell through, blaming the president for damaging relations with US allies.
“Our closest ally. Our critical trading partner,” California Governor Gavin Newsom wrote on social media.
“And Trump is hitting Canada with 50% tariffs. What the actual f*** are we doing?”

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