Canadian Prime Minister Mark Carney announced that Ottawa would impose equivalent retaliatory tariffs on US goods after last-minute trade negotiations with Washington collapsed. Canada decided on the “dollar-for-dollar” approach after the United States began applying new tariffs on Canadian products from midnight Saturday, according to the report published on August 22, 2026.

Carney said changes to US-proposed terms in the final stage of negotiations appeared unfair and economically unreasonable to Canada, raising doubts about the reliability of a possible agreement. Talks had continued intensively since July. US Trade Representative Jamieson Greer countered that Canada declined to finalize an agreement based on terms both sides had accepted earlier in the week.

The discussions had included reducing US tariffs on Canadian steel and aluminum from 50 percent to 25 percent, and on Canadian vehicles from 25 percent to 15 percent. Ontario Premier Doug Ford backed retaliatory tariffs. The Trump administration is also planning new 50 percent duties on various Canadian goods, while existing tariffs on steel, aluminum, vehicles and lumber would remain.