US-Canada tariff deal collapses, 50% tariffs hit some Canadian goods

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A tractor trailer crosses the Peace Bridge at the Canada-United States border in Fort Erie, Ontario, Canada, August 20, 2026. /VCG

The United States and Canada failed to reach ‌a trade ‌deal late on Friday, ‌both sides said, and the US will impose 50% tariffs on some imports from Canada.

A senior Trump ⁠administration ‌official said Section 338 tariffs on about $20 billion worth of Canadian goods would ‌go into effect just after midnight on Saturday.

Canadian Prime Minister Mark Carney said he had suspended trade negotiations and Canada would retaliate dollar for ⁠dollar on the new tariffs.

The ⁠decision by ⁠the US administration followed three straight days of talks in Washington between Canada's Minister for Trade ‌with the US, ⁠Dominic LeBlanc, and US Trade Representative Jamieson Greer.

Source(s): Reuters

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US-Canada tariff deal collapses, 50% tariffs added on some Canadian goods