Canada will impose retaliatory tariffs on U.S. goods beginning Sept. 8, targeting steel, dairy, appliances, agricultural equipment, paper, and electronics.
Aug. 22, 2026, 12:53 p.m. ET
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Washington
The United States imposed 50% tariffs on $20 billion worth of Canadian products early Saturday, and Canada said it would retaliate beginning Sept. 8 after last-ditch negotiations failed to resolve the latest strain in relations between the historic allies.
President Donald Trump’s import taxes will hit about 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.
Mr. Carney said that “in the coming days, we will release the details of these new tariff measures, which will come into force the Tuesday after Labor Day.” The dollar-for-dollar retaliation would target steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, he said from Ottawa.
He disclosed that Canada had been willing to drop remaining retaliatory tariffs on steel, aluminum, and autos if the United States substantially lowered its own, and to encourage provinces to restore U.S. alcohol sales. But he said Washington’s final demands went too far, saying, “They asked too much and offered too little,” Mr. Carney said.
Mr. Trump's top trade negotiator, Jamieson Greer, said the Republican administration was offering to cut tariffs on steel, autos, and lumber, “things that are sensitive for them. And they’ve always had the best deal, and they still would have an even better deal, but they didn’t want that," he told "Fox & Friends Weekend.
He added: “We’re moving forward with measures that respond to Canadian retaliation.”
The moves also call into question the future of a North American trade agreement covering the United States, Canada, and Mexico that is crucial to industry in all three countries.
Mr. Carney said the U.S. added last-minute terms that would have reduced tariff relief for Canadian-made vehicles, restricted Canada’s ability to strike trade deals with other countries, and weakened protections for language, culture, and sovereignty. He said such demands were “unacceptable."
But Mr. Greer, the U.S. trade representative, said that after a year of retaliation by its longtime ally, “We’ve said enough, and so we’ve taken countermeasures. Our interest is in protecting American workers and protecting American supply chains.”
The breakdown in negotiations marked a sharp reversal from two days earlier, when officials from the two countries sounded as if they were headed toward a compromise.
Mr. Carney said Ottawa would “hit back” with targeted tariff protection for industries exposed to the new U.S. duties, including some steel products.
Ontario Premier Doug Ford, who leads Canada’s most populous province, backed Mr. Carney’s response, saying the prime minister had his “full support” for retaliation “tariff for tariff, dollar for dollar” and that “everything needs to be on the table.”
The political impact will likely be even bigger than the economic fallout. The countries sold each other $880 billion worth of goods and services last year.
