U.S. and Canada fail to reach trade deal; tariffs take effect

Trade talks between the United States and Canada broke down late on Friday, August 22, 2026. The U.S. then imposed 50% tariffs on around $20–28 billion worth of Canadian goods, starting just after midnight.

U.S. Trade Representative Jamieson Greer said Canada had refused to accept a deal that both sides had agreed on earlier in the week. American officials said Canada added new demands and dropped earlier commitments.

Canadian Prime Minister Mark Carney stopped the negotiations and called his team back to Ottawa. Canada will respond with its own tariffs on U.S. goods, matching the American tariffs dollar for dollar.