The United States was set to impose 50% tariffs on $20 billion worth of Canadian products early on Saturday (August 22, 2026) after last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies.
Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” U.S.
Trade Representative Jamieson Greer said in a statement read to reporters on a press call shortly before midnight.
“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.
Canadian Prime Minister Mark Carney responded, “Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal. President Donald Trump’s import taxes will hit about 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.
