FIRST EDITION
The Canada-U.S. trade conflict
Tariffs are being charged both ways, and other measures are only scheduled or announced.
The story so far.
Canadian and American importers are paying tariffs, taxes on imports, on billions of dollars of each other's goods. Some of that cost can reach shoppers. Canada suspended trade talks on August 21, 2026. Prime Minister Mark Carney spoke of 'walking away from a bad deal'. The U.S. trade representative says Canada 'walked away from a near-final trade deal'. Some measures are in force, others only scheduled or announced. U.S. bans on some Canadian goods are scheduled for September 29, 2026.
A little background
This story covers August and September 2026 in a trade conflict between Canada and the United States that has run since early 2025. It is widely called a trade war. An earlier round ran from 2018 to 2019. The United States put tariffs on Canadian steel and aluminum, and Canada put countermeasures on U.S. goods. A tariff is a tax on an imported good, paid by the business that imports it. News reports also call tariffs duties. On July 20, 2026 U.S. President Donald Trump signed three proclamations, which are presidential orders. They set 50 per cent tariffs on a list of Canadian goods, to start on August 19. They rest on section 338 of the Tariff Act of 1930. That law lets a president put duties of up to 50 per cent on goods from a country he finds discriminates against U.S. commerce. In the proclamations the president found that Canada discriminates against American alcohol, dairy and motor vehicles. Prime Minister Mark Carney calls the tariffs 'unjustified'. Negotiators, among them U.S. Trade Representative Jamieson Greer and Canada-U.S. Trade Minister Dominic LeBlanc, worked on a deal. On August 18 another proclamation moved the start to August 22. Carney suspended the talks on August 21, 2026, and the tariffs took effect the next day. Canada announced tariffs on U.S. goods on August 25, and they took effect on September 8. Canada calls them counter-tariffs, a name for tariffs charged in reply. U.S. officials call them retaliation. Three status words matter in what follows. Announced means a government has said what it will do. Scheduled means a signed order sets a start date that has not arrived. In force means the measure applies at the border.
Where things stand
As ofCanada-U.S. trade talks broke down on August 21. By September 8, 2026 both countries had tariffs in force. Canada's counter-tariffs on C$27.6 billion of U.S. goods followed U.S. tariffs on Canadian goods that Canada values at the same amount. U.S. bans on some Canadian imports are scheduled for September 29, 2026.
- Tariffs in force in both directions
- U.S. tariffs of 50 per cent took effect August 22 on a list of Canadian goods that Canada values at C$27.6 billion. Canada's counter-tariffs on U.S. goods of the same value took effect September 8 at rates of 15, 25 or 50 per cent. U.S. import bans signed September 8 are scheduled for September 29, 2026. Changes to the U.S. tariff list were signed the same day with a September 15 start. A 50 per cent U.S. tariff on Canadian autos has been announced for January 1, 2027.
- Support for workers and businesses
- Alongside its counter-tariffs, Ottawa announced a $7.5 billion package, in Canadian dollars, of supports for workers and businesses. No payment had been reported as of September 15, 2026.
- No talks scheduled
- Each government blames the other for why the talks failed, and no new negotiations are scheduled. President Donald Trump and Prime Minister Mark Carney have each said a deal is possible.