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US-Canada rift deepens over tariffs

Aug 23, 2026, 6:38pm EDT
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Canada’s Prime Minister Mark Carney
Chris Tanouye/Reuters

US and Canadian officials traded blame after the two sides failed to reach a trade deal Friday, teeing up a damaging trade war that could threaten broad swaths of both economies.

The US’ 50% tariffs on roughly $20 billion of Canadian goods took effect Saturday, with Canadian Prime Minister Mark Carney vowing to match “Washington’s new tariffs dollar-for-dollar,” adding that Canada was “at war.”

Relations between the allies have deteriorated under US President Donald Trump’s second administration, with Trump calling for Canada to become a US state and Canadian provinces boycotting US booze.

Polls show most Canadians oppose concessions, hardening Carney’s stance.

The breakdown signals “the old Canada-US relationship is over,” a Canadian political science professor told The Associated Press.

US trade in goods with Canada
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