US-Canada trade negotiations suspended; Carney vows dollar-for-dollar retaliation

Floyd Brenz., Philippine Canadian Inquirer
August 22, 2026

Photo Courtesy: Getty Image

CANADA – The United States and Canada have suspended their trade negotiations after the two countries failed to reach an agreement on new trade terms.

Canadian Prime Minister Mark Carney vowed “dollar-for-dollar” retaliation in response to the 50% tariffs imposed by the administration of US President Donald Trump on certain Canadian products.

The tariffs are expected to affect around $20 billion worth of Canadian goods, including certain equipment, alcoholic beverages, plywood, and hockey equipment.

Carney said the latest changes proposed by the United States were unfair and unreasonable. Meanwhile, the US Trade Representative claimed that Canada had backed away from previously agreed-upon conditions.

The latest dispute has heightened tensions between two of the United States’ largest trading partners and could affect product prices and the flow of goods between the two countries.

It remains unclear when the trade negotiations will resume as both sides weigh their next steps.