US-Canada trade war reignites as talks fail at last minute

Floyd Brenz., Philippine Canadian Inquirer
August 23, 2026

Photo Courtesy: Getty Images

Trade talks between the United States and Canada collapsed at the last minute, reigniting tensions between the two countries and prompting Ottawa to suspend negotiations.

Canadian Prime Minister Mark Carney said Canada could not reach an agreement that would meet its objectives, leading him to suspend the talks and order Canadian negotiators to return to Ottawa.

Carney also announced that Canada would match the new US tariffs “dollar for dollar” to protect Canadian workers and businesses. The move comes after Washington imposed 50% tariffs on around $20 billion worth of Canadian goods.

The Canadian tariffs are set to take effect on September 8 and will cover products including steel, dairy, appliances, agricultural equipment, pulp, paper and electronics.

Carney said the United States had proposed terms that were “uneconomic” and “unfair,” arguing that Washington was asking too much while offering too little.

Meanwhile, US Trade Representative Jamieson Greer said Canada declined to finalize the trade agreement under terms that had been reached earlier in the week. He claimed the proposed deal would have provided significant tariff reductions for Canadian steel, aluminum, automobiles and lumber.

The breakdown has renewed concerns over a broader trade war between the two countries, whose annual trade relationship is worth nearly $900 billion.