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Trump’s 50 Percent Tariffs Take Effect After US-Canada Trade Talks Collapse

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22.08.2026

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That’s how one Canadian journalist described overnight developments between the governments of the US and Canada after trade talks between the two were suspended on Friday night without a deal in place to avoid the imposition of 50% tariffs threatened by President Donald Trump on a wide swath of Canadian goods.

Both nations accused the other of scuttling the deal, with Canadian Prime Minister Mark Carney citing “last-minute changes” by the Trump administration and US Trade Representative Jamieson Greer pointing to “new demands and walk backs” by the Canadians.

Asked earlier on Friday if a deal was within reach, Trump responded, “I think so, yeah, we’ll see.” But by late Friday night, it was clear the talks had collapsed entirely as Carney summoned Canada’s representatives back to Ottawa.

In his statement on Friday night, Carney said, “We have recognized from the beginning that America has changed, and that we will not return to our old relationship. Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.”

Republicans Want to Punish Canada for “Exporting” Its Wildfire Smoke Into the US

The fresh American tariffs and the promise of Canadian counter-tariffs are a significant escalation in the dispute between Canada and the US, two countries once seen as being as close as can be on trade. Canadian Trade Minister Dominic LeBlanc met with Greer, his American counterpart, throughout the week in Washington, DC, to try to secure a deal before the administration’s Friday night deadline. The terms of the tentative deal were not made public, but separate sources have said the agreement would have lowered sectoral tariffs that have been crushing the Canadian aluminum, steel and automobile sectors for months. In return, Carney asked Canadian premiers to consider ending provincial bans on American alcohol.

The fresh American tariffs and the promise of Canadian counter-tariffs are a significant escalation in the dispute between Canada and the US, two countries once seen as being as close as........

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