Canadian Prime Minister Mark Carney introduced retaliatory tariffs on the US on Saturday (August 22, 2026), after strolling away from a “dangerous deal” on commerce in a deepening rift between the longtime allies.
Negotiations between the neighbouring nations broke down on Friday (August 21, 2026) in Washington, placing into pressure new 50% U.S. tariffs impacting about $20 billion value of products, or 5.5% of Canadian exports to the US.
Impacted merchandise vary from hockey sticks to cement.
“You’re at struggle whenever you get attacked. We acquired attacked,” Mr. Carney stated.
U.S. President Donald Trump had stated Washington “ought to have the ability to have a cope with Canada,” citing his “good relationship” with Mr. Carney.
However on Saturday (August 22, 2026), Canada’s Prime Minister stated Mr. Trump set situations that have been in the end unacceptable although earlier talks had been optimistic.
“In latest days, the US proposed new phrases that have been uneconomic, unfair and undermined the online advantages for Canada, and referred to as into query the reliability of any deal,” Mr. Carney stated in Ottawa.
“We can’t settle for what they’ve supplied, and we won’t give what they’ve requested.”
New Canadian tariffs will notably goal the U.S. metal and dairy industries and take impact on September 8. Extra particulars would come subsequent week, Mr. Carney stated.
A senior U.S. official characterised this week’s talks in Washington as candid and never acrimonious.
U.S. Commerce Consultant Jamieson Greer informed Fox Information on Saturday (August 22, 2026) that Washington was “shifting ahead with measures that reply to Canadian retaliation.” He additionally stated no new talks have been deliberate with Canadian negotiators.
‘Vital strain’
Canada has been searching for reduction from Mr. Trump’s tariffs on autos, metal and aluminium, which have battered the nation’s economic system, compelled job losses and strained what was as soon as an iron-clad commerce relationship.
The White Home had alleged “discriminatory therapy” by Canada in opposition to U.S. alcohol, vehicle and dairy merchandise in introducing the duties.
They have been initially set to take impact Wednesday (August 26, 2026), earlier than Mr. Trump issued a three-day reprieve citing progress in talks.
Mr. Carney stated one cause the deal collapsed was U.S. negotiators on the eleventh hour introducing restrictions on Canadian commerce offers with different nations.
U.S. negotiators additionally made unacceptable “threats” to the French language and “Quebec tradition,” he stated, referring to the French-speaking province in jap Canada.
The escalating commerce struggle was met with anger by Democratic lawmakers and governors from border states together with Minnesota, New York and Washington, blaming Trump for triggering chaos that may elevate prices on U.S. companies and households.
“Needlessly choosing fights with our allies and elevating costs right here at residence. That’s Trump’s financial coverage in a nutshell,” New York Governor Kathy Hochul posted on X.
Past the newest tariffs, the U.S. and Canada nonetheless should agree on revisions to the North American free commerce settlement, USMCA, which Trump declined to resume in its present kind.
Mr. Trump’s threats to make Canada the 51st U.S. state have additionally antagonized Canadians.
Lunch cash
Mr. Carney has repeatedly stated relations with the U.S. have been perpetually altered, and that Canada should scale back reliance on its southern neighbor, which at the moment accounts for roughly 70% of Canadian exports.
“We’ve been underneath no illusions. We recognised from the beginning that America has modified,” Mr. Carney stated Saturday (August 22, 2026). “We acknowledge that generally, its signature was written in pencil.”
Mr. Carney spoke with provincial leaders to stipulate subsequent steps. One among them, Ontario Premier Doug Ford, stated Canadians should stay united.
Mr. Trump “can’t be trusted, easy as that,” Mr. Ford informed reporters. “President Trump is the kind of one that would steal your lunch cash.”
The Enterprise Roundtable, a gaggle of 200 chief executives of main U.S. firms, warned the brand new tariffs “danger elevating prices for American companies and households,” and urged each governments to renew negotiations.
Printed – August 23, 2026 03:41 am IST
