New US 50% tariffs on Canadian goods take effect after trade talks collapse

A new wave of U.S. tariffs on a wide range of Canadian goods took effect on August 22 after last-minute trade negotiations between Washington and Ottawa broke down.

Canadian Prime Minister Mark Carney announced the suspension of talks shortly before a Friday, August 21, deadline, saying Canada would respond with reciprocal tariffs on U.S. goods “dollar for dollar," Caliber.Az reports. 

My statement on Canada-U.S. trade negotiations: pic.twitter.com/65OuQH40ra

— Mark Carney (@MarkJCarney) August 22, 2026

Carney said “last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal”.

The two countries had been negotiating intensively since July after U.S. President Donald Trump threatened to impose a 50% tariff on nearly C28billion(20 billion) worth of Canadian imports by August 19.

Trump temporarily paused the tariffs earlier in the week, saying the two sides were close to reaching a trade agreement that would be “very good” for both countries.

However, the negotiations failed to produce a deal before the deadline. Carney said “important progress” had been made but it was “not enough to meet our objectives for Canadians”.

“As a result, this evening, I have decided to suspend trade negotiations with the US and have directed negotiators to return to Ottawa,” he said.

“Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

The new 50% U.S. tariffs, imposed under the Tariff Act of 1930, apply to a range of Canadian products, including wine, dairy products, cement, clothing and hockey equipment.

They come on top of existing U.S. tariffs on Canadian steel and aluminium, automobiles and lumber.

By Sabina Mammadli