The United States has announced a 50 percent tariff on nearly $20 billion worth of Canadian goods after three days of trade negotiations in Washington, DC failed to produce a final agreement. The announcement came after a deadline set by President Donald Trump expired at 12:01 a.m. last Friday, according to the report published on August 22, 2026.

The new tariff is expected to affect about 5 percent of Canada’s total exports to the United States, including electronics, industrial machinery and dairy products. It adds to existing US tariffs on steel, lumber and automobiles. Canadian Prime Minister Mark Carney warned of “dollar-for-dollar” retaliatory measures and said his government would introduce steps in the coming days to support workers and businesses.

US Trade Representative Jamieson Greer blamed Canada for the collapse, saying it declined to finalize an agreement under terms accepted earlier in the week and introduced new demands. The report said the countries have remained in a trade dispute since Trump imposed tariffs on major Canadian imports early in his second term, prompting retaliatory action from Ottawa.