Canada <a href="https://todaytrendnews7.com/u-s-canada-trade-talks-have-collapsed-carney-says-these-3-issues-torpedoed-them/" title="U.S.-Canada trade talks have collapsed. Carney says these 3 issues torpedoed them”>trade talks collapse as new 50% tariffs go into effect
Ben Werschkul· Washington Correspondent
Sat, August 22, 2026 at 5:39 PM GMT+5:30
4 min read
Over two weeks of trade talks between the US and Canada collapsed late Friday with the Trump administration moving forward on 50% tariffs on an array of Canadian goods and Canada saying it would match the new duties “dollar for dollar.”
It was a sharp and sudden negative turn in the talks just hours after President Trump told reporters late Friday afternoon that negotiators had “pretty much” struck a deal, even as the talks continued to labor over a series of complex issues
What it means for now is that Trump has moved forward with new tariffs on a range of Canadian goods in response to what the US claims are discriminatory trade practices around automobiles, alcohol, and dairy products
The new tariffs will impose 50% duties and are set to impact about $28 billion worth of goods exported from Canada, from wine to hockey sticks to cement, and cover about 5% of what Canada exported to the US last year
“Despite the US offer to Canada to receive the best treatment of any major exporter to our market,” Trump’s trade team claimed early Saturday morning, “new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days.”
Canadian Prime Minister Mark Carney offered in response that trade talks had been suspended as the US offer had “not been enough to meet our objectives as Canadians” and that it was the US that had asked for last-minute changes
And on the subject of the new duties from the US, Carney promised that “Canada will match those tariffs dollar for dollar to protect our workers and businesses.”
The rapid fire collapse in talks appeared to set the stage for a new level of trade war between the US and Canada in the months ahead in duties that the Canadian Chamber of Commerce had previously warned “would damage both economies, drive up costs for U.S. families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the U.S.-Mexico-Canada Trade Agreement.”
The full collapse in talks followed a three-day pause announced earlier this week, and the teams met Thursday and Friday at the offices of the US Trade Representative in Washington, D.C., with both sides suggesting a deal was within reach
Dominic LeBlanc, a top Canadian negotiator, had told reporters on Thursday, “We’re very close, we continue to make progress,” as significant tariff relief appeared to be in the offing with both sides pushing for a wide-ranging deal that would have spanned sectors from automobiles to metals to farm goods, but now appears off the table
