U.S. set to impose 50% tariffs on Canada after failed talks; Canada to match them
The U.S. was set to impose 50% tariffs on $20 billion worth of Canadian products early Saturday. Canadian Prime Minister Mark Carney countered that Canada would match them "dollar for dollar."
Updated on: August 22, 2026 / 12:06 AM EDT / CBS/AP
The U.S. was set to impose 50% tariffs on $20 billion worth of Canadian products early Saturday after last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies. Canada's leader countered that it would match the tariffs "dollar for dollar."
In a call with reporters late Friday, U.S. Trade Representative Jamieson Greer said that Canada had declined to finalize the trade deal under the terms that had been agreed to earlier this week.
In his own statement, Canadian Prime Minister Mark Carney said that the "progress" made in the negotiations was "not been enough to meet our objectives for Canadians."
"As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa," Carney said, adding that "Canada will match those tariffs dollar for dollar to protect our workers and businesses."
President Trump's import taxes will hit about 5% of what Canada ships to the U.S. every year, including products ranging from hockey sticks to tongue depressors.