Canadian Prime Minister Mark Carney announced that Canada would impose retaliatory "dollar for dollar" tariffs on US goods. This decision comes after the collapse of trade talks with the US, which then implemented 50% tariffs on approximately $20 billion (some sources say $28 billion) worth of Canadian products. The US tariffs, affecting goods from hockey sticks to tongue depressors, went into effect at 04:00 GMT on August 22, 2026.
Carney stated that the US's "last-minute changes" to the proposed trade deal were "unfair, uneconomic, and called into question the reliability of any deal." The US Trade Representative, Jamieson Greer, countered that Canada "declined to finalize the trade deal under the terms agreed earlier this week" and that the 50% duties were in part payback for Canada's prior retaliatory measures against earlier US tariffs, including provincial bans on American alcohol.
The Canadian tariffs, which will target sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, are set to take effect on September 8. This move follows Canada's previous retaliatory tariffs on nearly C$30 billion worth of US imports in 2025 after US tariffs on steel and aluminum. Both the US Chamber of Commerce and the Canadian Chamber of Commerce have expressed concerns, warning of potential damage to both economies, increased costs for consumers, supply chain disruptions, and job losses.
Provincial premiers like Ontario's Doug Ford and British Columbia's David Eby voiced support for a strong, unified Canadian response, while Alberta's Danielle Smith urged for a swift resumption of negotiations. The new 50% US tariffs were imposed under Section 338 of the Tariff Act of 1930, a provision never previously utilized. US Trade Representative Greer also indicated that no new talks with Canada were planned, and the US would "respond to Canadian retaliation."
