OTTAWA — August 23, 2026
Canada’s Prime Minister Mark Carney has accused the United States of using new tariffs to “hurt and divide” Canada, warning that Washington has seriously miscalculated the consequences of the latest escalation in the two countries’ trade dispute.
The comments came after trade negotiations between the two countries collapsed late Friday. Carney said Canada had been prepared to reach a deal but rejected what he described as unfair and economically damaging US demands.
“They asked too much and offered too little,” Carney said.
🇺🇸 New tariffs trigger Canadian response
The United States is imposing new 50% tariffs on a range of Canadian goods, adding to existing duties on products including steel, aluminium, automobiles and lumber. The latest measures cover industries such as clothing, cement, beer and hockey equipment.
Carney has announced that Canada will respond with dollar-for-dollar tariffs, beginning on September 8. The Canadian measures are expected to target products including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
⚠️ Trade tensions deepen
Carney said Canada was taking the retaliatory measures reluctantly because they could increase costs and reduce choices for Canadian consumers. However, he argued that Ottawa had to protect Canadian workers, businesses and the country’s economic independence.
The Canadian government says it has committed almost C$25 billion in support for workers and businesses affected by US tariffs.
The breakdown threatens to further damage the deeply integrated economic relationship between the two North American neighbours, with businesses on both sides facing greater uncertainty.
Carney insisted that Canada would not compromise its sovereignty or key industries, declaring that the latest US tariffs were ultimately a “miscalculation” because Canadians would stand together.
The trade dispute now enters a more serious phase, with both countries preparing for further economic pressure and no immediate agreement in sight.
