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Live updates: Canada to impose retaliatory tariffs on $20B in US goods as trade war escalates
Follow the latest news on President Donald Trump and his administration | Aug. 25, 2026
Edited By
CURTIS YEE, LUENA RODRIGUEZ-FEO VILEIRA and MICHAEL WARREN
Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year]
Here’s what we’re following:
- Canada struck back at the United States on Tuesday withretaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply.
- Canada’s retaliation came after the Trump administration imposed 50% tariffs over the weekend on Canadian goodsfollowing the collapse of trade negotiations. Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during the failed talks showed that Americans wanted to “destroy our major industries.” President Donald Trump intensified the confrontation Monday, telling Canadian leaders to “fall in line.”
- The Supreme Court on Monday cleared the way for Trump to move ahead with hisexecutive order restricting mail-in voting, though it remains unclear how much his administration can implement before the fast-approachingmidterm elections. Mail balloting has long been afavorite target for Trump, who has claimed that it breeds fraud despite strong evidence to the contrary and his own use ofthe voting method.
- Treasury SecretaryScott Bessentannounced a new round of sanctions aimed at Iranon Monday and warned every country thatdoes business with the Islamic Republicto sever those financial ties or face retaliation from the U.S. The announcement follows Trump’s pledge last week to unleash an “economic D-Day” against Iran, in an effort to sever it from the rest of the global economy.
Agriculture secretary acknowledges farmers’ concerns over trade war but says US will come out on top
By COLLIN BINKLEY
Talking to reporters outside the White House on Tuesday, Agriculture Secretary Brooke Rollins said she’s proud that Trump is “willing to stand up and make the hard decisions.”
“There’s no doubt that it causes concern amongst our farmers and ranchers,” Rollins said, adding that there are “a lot of unknowns” in the situation
Rollins spoke shortly after Canada announced retaliatory tariffs on about $20 billion worth of American goods, responding to Trump’s new tariffs on about $20 billion in Canadian imports, including dairy products
“I believe strongly that once they finish this next round of negotiations, whatever you want to call it, that America will certainly be the better for it, and that our farmers and ranchers will benefit the most,” Rollins said
A look at some of the products Canada is targeting in its counter-tariffs
By WYATTE GRANTHAM-PHILIPS
Many of the goods are highly specific and mirror products on which Washington began imposing 50% tariffs over the weekend. But the list also includes additional targets, like goods made of steel and aluminum — which already face a separate 50% U.S. sectoral tariff on most imports globally
- Live and frozen fish, crustaceans, oysters and mussels
- Cheese and curd products
- Natural honey, molasses and baking mixtures
- Perfume, makeup and hair preparations
- Toilet paper, facial tissues and envelopes
- Various metal products made of steel or aluminum, including wire, rods, pipes and foil
- Stoves, ranges, refrigerators and other household appliances
- Smartphones and video game consoles
The new tariffs on these products will carry rates that vary between 15%, 25% or 50%
▶ Read more
ICE arrests jumped to nearly 50,000 in July, the highest monthly total of Trump’s second term
By REBECCA SANTANA
U.S. Immigration and Customs Enforcement arrested nearly 50,000 people during July, the highest single monthly arrest total during the second Trump administration, according to new figures
The spike in immigration arrests shows that the administration has continued to advance its mass deportations agenda despite a shift in approach earlier this year from high-profile operations in large American cities that sparked a public outcry to arrests that have garnered less attention but have nonetheless been disruptive
The July arrest tally of 49,571 marks a 15% jump from 43,021 arrests a month earlier and a 70% increase from 29,241 in February, in the aftermath of the Trump administration’s enforcement surge in Minnesota, according to government data that was provided by ICE to the University of California, Berkeley’s Deportation Data Project and analyzed by The Associated Press
▶ Read more
JUST IN: ICE arrests jumped to nearly 50,000 in July, figures show, the highest monthly total of Trump’s second term
By THE ASSOCIATED PRESS
Finance minister: ‘This is a Team Canada moment’
By ROB GILLIES
“This a moment to stand up,” François-Philippe Champagne also said
Canada will not accept restrictions on its ability to choose its trading partners, he said
“Maintaining our economic sovereignty is non-negotiable. That’s what we did, and that’s what we’ll do,” Champagne said
Canadian minister of jobs spells out economic impact of US tariffs
By JESSE BEDAYN
The “unjust tariffs” and “economic warfare” have consequences, said Patty Hajdu at the press conference, noting that the impact of tariffs has been felt before, though not at this level
The unknowns of what comes next — how big a dent tariffs will make in people’s pocketbooks — causes “worry and anxiety” that makes it challenging to plan for the future, she said
“It has an effect of sort of freezing people in place: Should I make that investment? Should I buy that new house? Should I take that vacation? Should I add on to my businesses? Should I add a product line?” Hajdu said
Canada aims to cushion blow to its economy and consumers
By ROB GILLIES
Canada also announced a support package for workers and businesses affected by the dispute worth $7.5 billion in Canadian dollars (US$5.4 billion). They said the counter tariffs will raise costs for some businesses and consumers, but expect the overall economic effects to be moderate
They said the government has provided more than $30 billion Canadian dollars (US$21.7 billion) in tariff-related support since the beginning of 2025 — far more than it has collected in retaliatory duties — as it tries to cushion the blow
The two countries have deeply integrated supply chains across autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border
Industry Minister Mélanie Joly urged Canadians to buy Canadian products as they “launch this movement of resistance to what is happening to us.”
Canada is matching US tariffs ‘dollar for dollar, rate for rate’
By ROB GILLIES
Canadian officials led by Finance Minister François-Philippe Champagne announced the retaliatory tariffs, which they said would go into effect on Sept. 8
Trump’s tariffs “will have real consequences for Canadian workers, businesses and communities across our nation. Canada must respond, and today we are,” Champagne said
“We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” Champagne added in French
Canada strikes back with retaliatory tariffs on about $20 billion in American goods
By ROB GILLIES
Canada is targeting more than 700 U.S.-made products as the trade war escalates. The list extends well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%
The tariffs on American steel, dairy products, appliances, farm equipment, pulp and paper and electronics take effect Sept. 8 at rates of 15%, 25% and 50%, with Canada matching the corresponding U.S. tariff rate on each product
Canadian officials said the goal is not to raise revenue but to protect Canadian companies and reduce U.S. imports. Goods facing 50% tariffs also include some aluminum products, furniture, clothing and apparel. Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25% tariffs. Existing Canadian countertariffs on U.S. autos will remain in place
JUST IN: Canada to impose retaliatory tariffs on more than 700 US goods, including steel and appliances, as trade war escalates
By THE ASSOCIATED PRESS
Trump’s trade war with Canada could rattle economies in states with key Senate races
By BILL BARROW, PATRICK WHITTLE
Trump’s trade war threatens Republican efforts to address voters’ economic concerns as control of the U.S. Senate hinges on states along the border
“Imposing new tariffs on Canada is a mistake,” Republican Sen. Susan Collins of Maine, one of Democrats’ top targets this year, said while campaigning Monday
The issue also puts pressure on Republicans in the border states of Michigan, Ohio and Alaska, and in Iowa, whose main trading partner is Canada
“Trump is escalating a trade war with Canada for his own vanity,” Michigan’s Democratic nominee Abdul El-Sayed said on social media, adding that his Republican opponent, former Rep. Mike Rogers, is a “rubber stamp” for such policies
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Ontario premier, after trading insults with Trump, wants to dial it down
By ROB GILLIES
FILE – Ontario Premier Doug Ford speaks to the media during a press conference at Queen’s Park in Toronto, Oct. 27, 2025. (Nathan Denette/The Canadian Press
Doug Ford, who traded personal insults with Trump a day earlier, struck a more conciliatory tone Tuesday, dismissing the president’s Lake Ontario threat as “a lot of rhetoric” and urging the two countries to resume negotiations
Ford acknowledged in a CNN interview that the dispute had “got a little personal” and agreed it’s time to lower the temperature. He said the trade fight is hurting both countries and that Canada and the United States should “get back to the table” and negotiate a fair deal
US consumer confidence falls to lowest level in 7 months as gas prices remain elevated
By MATT OTT
Americans’ confidence in the economy declined again this month as the ongoing conflict in Iran keeps pump prices over $4 a gallon
The Conference Board said Tuesday that its consumer confidence index dipped to 89.4 in August from 90.2 in July. That’s the lowest in seven months and essentially in the same lukewarm range its been in since the beginning of the year. In late 2024 and early 2025 the readings were consistently above 100
Respondents’ views of their present situation improved, but their outlook for the near-term future soured. Americans remain frustrated with the economy after five years of elevated inflation, potentially posing a risk to Trump and Republicans with fewer than 70 days to go before Election Day
JUST IN: Consumer confidence falls in August as ongoing conflict in Iran keeps gas prices steadily above $4 a gallon
By THE ASSOCIATED PRESS
Businesses and consumers are caught in the middle, facing uncertainty about price increases
By MIKE HOUSEHOLDER
Michael Howard II, owner of a furniture business in Warren, Michigan, outside Detroit, said the tariffs will hamper the “ability for us to put food on the table for our family, but also impacts the ability for us to give back to our community.”
Howard and his wife started their business a decade ago. They make and sell everything from dining room tables to bookcases
“To say that we don’t need Canada is just disingenuous,” he said. “It’s dishonest. And it’s just absolutely not truthful. We need our neighbor, but also they need us.”
Canadians warn that trade war could harm US automakers
By ROB GILLIES
FILE- Mary Skinner inspects the rear end of a General Motors Chevrolet Cruze at Jamestown Industries in Youngstown, Ohio on Nov. 28, 2018. /Tony Dejak, File)
Ontario Premier Doug Ford told The Associated Press in an exclusive interview Monday that “everything is on the table,” noting his province would be ready to cut off electricity and critical minerals to the U.S. if the trade war worsens. Trump “underestimates Canada. We’re all in,” Ford said
Cars and auto parts, as well as energy products, were excluded from Trump’s latest round of tariffs — but remained key sticking points in negotiations that crumbled over the weekend, and Carney said Monday that Washington’s auto-sector proposals would “gradually dismantle” Canadian production
Canada is the largest customer for U.S. automobiles, Carney noted — and he questioned what Trump’s latest move would mean for workers in states such as Ohio, Kentucky and Alabama who depend on that demand
US households face higher prices on more than 550 Canadian products
By WYATTE GRANTHAM-PHILIPS
Here are just some of the many items specified by the White House that are subject to Trump’s 50% import tax:
- Natural honey
- Bulbs for plants such as tulips and lilies, as well as some fresh cut flowers
- Seeds for beets, onions and other vegetables
- Horsehair, tortoise shells, antlers and various animal products
- Alcohol such as beer, vermouth and cider
- Furniture knobs, wallpaper and lighting fixtures
- Plates, cups, bowls and other kitchen or tableware
- Paints, varnishes, vinyl tile floor coverings and various plywood sheets
- Ice skates, golf equipment, fishing rods and other sports accessories
- Perfumes, makeup and manicure preparations
- Suitcases, bags, gloves and coats
- Toys and certain “articles for Christmas festivities”
- Digital cameras and recording equipment
- Smartphones and video game consoles
- Envelopes, cigarette paper and toilet or facial tissue
Carney: Netflix in French is not a joke
By ROB GILLIES
“There is a huge gap between the American perspective and the Canadian perspective. That’s the first point,” Carney added. “In the final hours of the negotiations, it was a question of — you mentioned Netflix — discoverability on platforms, the streamers. You can see whether, if you want to watch some television, it is easy or not to find French-language and Quebec programs. Because of legislation here in Quebec, it is easier now. But for the Americans, that is an irritant. No, it is a law.”
Labeling is another example, he said: “That is also on the list of irritants the Americans mention. And the government says each time: No, no, no. The joke is over. It’s not amusing. It’s not a ‘funny fact.’ It’s a right.”
Here’s what Carney said about the US position on French-language content and labels
By ROB GILLIES
Canadian Prime Minister Mark Carney speaks as he announces a $11.3 billion contract for icebreakers at the Davie shipyard in Levis, Quebec on Monday, Aug. 24, 2026. Quebec Premier Christine Frechette, right, looks on. (Jacques Boissinot/The Canadian Press
Carney said Monday that U.S. negotiators had raised the discoverability of French-language content on streaming platforms, along with French-language labeling rules, as trade irritants
And he rejected the idea that such protections were negotiable, saying in French: “For the Americans, questions about the French language, Quebec culture, francophone culture and Canadian culture are irritants. Here in Quebec, here in Canada, they are rights — fundamental rights.”
Jeffries says he took the meeting with Kushner to address the affordability crisis
By LISA MASCARO
The Democratic leader said affordability is not a hoax as Trump has said, but very real — “People are drowning in this failed economy.”
The meeting between Jeffries and Kushner, the president’s son-in-law and top outside adviser, was seen as an overture from the administration before the midterms elections
Speaker Mike Johnson, a close Trump ally, had bristled that Kushner better not be hedging his bets against Republicans
Trump denies attempting to interfere with Canadians’ right to speak French
By DARLENE SUPERVILLE
“I love French Canadians,” the president said in a follow-up social media post
Trump appeared to be responding to assertions by Carney that the United States had proposed measures he deemed unacceptable that would hurt French language protections
Trump accused Carney of telling a “lie” and disparaged the prime minister as “weak” and “ineffective.”
“I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing,” he said, asserting the claim was made up by Carney in a bid to boost his political standing at home
Democratic leader Jeffries fires back at critics after meeting with Jared Kushner
By LISA MASCARO
“He asked for a meeting and I took it,” says Rep. Hakeem Jeffries in a defiant video posted to social media
Wearing a New York Yankees cap and looking straight into the camera, Jeffries, who is in line to become House speaker if Democrats seize majority control of the House, leveled a follow-up warning: “I shouldn’t have to say it but I am: No one is going to get a pass.”
“We are going to hold every single member of the Trump cartel accountable — from day one,” Jeffries said, foreshadowing a robust oversight agenda
Trump says he’s considering renaming Lake Ontario as ‘Lake America’ as trade war with Canada escalates
By DARLENE SUPERVILLE, ROB GILLIES
Such a change would be reminiscent of the Republican president’s unilateral action last year by executive order to rename the Gulf of Mexico to the Gulf of America
The United States and Canada are locked in a trade dispute, with Canada expected to announce retaliatory measures Tuesday. That’s in response to the Trump administration enacting 50% tariffs on $20 billion of Canadian goods over the weekend after talks between the countries broke down
“The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don’t expect to doing much business with Ontario any longer,” Trump said Tuesday on social media
Ontario is Canada’s most populous province and is home to the country’s auto industry
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Canada set to announce retaliatory tariffs as Trump tells its leaders to ‘fall in line’
By ROB GILLIES
Canada will announce retaliatory tariffs against the United States on Tuesday after relations deteriorated sharply Monday, with President Donald Trump telling Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs and Prime Minister Mark Carney accusing Washington of trying to subordinate Canada
Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and steel, while Carney said U.S. trade demands showed Washington wanted to “destroy our major industries,” including autos, steel and aluminum
Finance Minister François-Philippe Champagne and three other Cabinet ministers are also expected Tuesday morning to share details of supports for workers affected by tariffs. Carney said earlier Monday that Canada may need to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses
