Economy & Trade
Canada to announce response to Trump tariffs
Canada is due to announce on Tuesday, August 25, new measures in response to US President Donald Trump's latest tariffs, after trade talks between Ottawa and Washington failed to avert new duties.
The Canadian government said the finance, industry and labour ministers and other officials would hold a press conference in Ottawa to detail Canada's response. It said the measures were intended to protect and support Canadian workers and businesses.
The United States and Canada failed on Friday to reach a deal after weeks of talks. New 50% US tariffs on selected Canadian goods took effect on Saturday, hitting about 5.5% of Canadian goods entering the United States, worth about $20 billion. Products affected include hockey sticks and cement.
Trump said Monday that he would double tariffs on Canadian autos from next year to 50%. The current US tariff affecting Canadian autos is 25% for non-US content, while imported steel to the United States generally faces a 50% duty. US automakers did not immediately comment.
Canadian Prime Minister Mark Carney has announced retaliatory tariffs from September 8, targeting US steel and dairy industries and also covering sectors including agricultural equipment, paper and electronics.
Carney said Canada's goal in the talks “has always been to get the best deal for Canadians, never a deal at any price or on any time frame.” He said US negotiators wanted unfair terms that would harm Canada's automotive, steel and aluminum sectors.
US Vice President JD Vance, speaking at a separate event Monday, blamed Canada's “unreasonable last-minute demands.” The White House had alleged discriminatory treatment by Canada against US alcohol, automobile and dairy products when it rolled out the 50% tariffs.
The United States is Canada's biggest trading partner, with Canadian exports to the United States representing 70% of Canada's total exports. Canada is the United States' second-biggest goods trading partner this year, behind Mexico, according to US government data.
Washington and Ottawa also still need to agree on revisions to the US-Mexico-Canada free trade agreement, which Trump has declined to renew in its current form.
Update
Canadian ministers are due to hold a press conference in Ottawa on Tuesday to announce new measures responding to the US tariffs.
The Canadian government said the measures are intended to protect and support Canadian workers and businesses.
Source note: AFP news report published on 25 August 2026 at 03:09:04 UTC.
Update
US Vice President JD Vance blamed Canada's “unreasonable last-minute demands” for the trade deal falling through.
Ontario Premier Doug Ford criticised Trump's auto tariff threat and said Ontario would go at Trump “full steam”.
Trump warned online of “far worse” consequences if officials did not “fall in line”.
Source note: AFP news report published on 24 August 2026 at 19:14:35 UTC.
Update
Carney said Monday the goal was to get the best deal for Canadians, not a deal at any price or on any time frame.
Trump said Canada had been “ripping off” the United States and that “we don't need Canada, they need us”.
The Angus Reid Institute said three in four Canadians supported the government's decision to walk away from talks, while two in five had some fear about their jobs.
Ontario Premier Doug Ford criticised Trump's auto-tariff threat.
Source note: AFP news report published on 24 August 2026 at 17:05:42 UTC.
Update
Canadian Prime Minister Mark Carney said Canada would not pay just “any price” for a US trade deal.
Source note: AFP news report published on 24 August 2026 at 16:28:45 UTC.
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The Angus Reid Institute said three in four Canadians supported Mark Carney's decision to walk away from trade talks.
The Angus Reid Institute said two in five Canadians had some fear about their jobs.
Trump said Canada had been "ripping off" the United States for years and said, "we don't need Canada, they need us."
Source note: AFP news report published on 24 August 2026 at 15:14:38 UTC.
Update
Trump said tariffs on all Canadian cars, trucks, automotive parts and steel would rise to 50% on January 1, 2027.
The current US tariff affecting Canadian autos is 25% for non-US content, while imported steel generally faces a 50% duty.
Canada's retaliatory tariffs will target US steel, dairy, agricultural equipment, pulp and paper, and electronics.
US Trade Representative Jamieson Greer said no further negotiations had been scheduled.
Greer said Washington had offered tariff reductions on softwood lumber, autos and most Canadian steel.
Source note: AFP news report published on 24 August 2026 at 14:37:47 UTC.
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US President Donald Trump said he would raise auto and steel tariffs targeting Canada to 50% from 2027.
Source note: AFP news report published on 24 August 2026 at 13:46:12 UTC.
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US President Donald Trump responded on Truth Social after Canada announced retaliatory tariffs.
Trump said Canada wanted “the benefits of being a State, without being one” and accused Canada of charging US farmers tariffs for years.
Source note: AFP news report published on 23 August 2026 at 05:43:11 UTC.
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Carney said the deal collapsed partly because US negotiators introduced restrictions on Canadian trade deals with other countries at the last hour.
Carney said US negotiators made unacceptable threats involving the French language and Quebec culture.
Democratic lawmakers and governors from border states criticised Trump over the escalating trade dispute.
The Business Roundtable warned the new tariffs risk raising costs for American businesses and families and urged both governments to resume talks.
Ontario Premier Doug Ford said Canadians must remain united and said Trump could not be trusted.
Source note: AFP news report published on 22 August 2026 at 21:07:33 UTC.
Update
Canada-US trade talks broke down on Friday in Washington.
New 50% US tariffs covering about $20 billion of Canadian goods, or 5.5% of Canadian exports to the United States, came into force.
Canadian Prime Minister Mark Carney said Canada would impose new retaliatory tariffs targeting US steel and dairy industries from September 8.
US Trade Representative Jamieson Greer said no new talks with Canada were planned and that the United States was moving forward with measures responding to Canadian retaliation.
Source note: AFP news report published on 22 August 2026 at 17:38:44 UTC.
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Canadian Prime Minister Mark Carney said Canada would match US tariffs “dollar for dollar.”
Source note: AFP news report published on 22 August 2026 at 03:51:50 UTC.
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Former US commerce official Christopher Padilla told AFP it is not unusual for trade negotiations to run up to a deadline and said he expected the Trump administration used the tariff threat to seek early concessions.
The source says the US Supreme Court struck down many of Trump's global tariffs earlier in the year and that Trump used an untested legal provision for the new Canada duties.
Trump's trade envoy Jamieson Greer previously said the tariffs aimed to hold Canada accountable for retaliation against the United States.
Greer cited Canadian provinces removing US alcohol products from shelves and giving better dairy market access to the European Union.
Source note: AFP news report published on 19 August 2026 at 05:30:38 UTC.
Update
The US Trade Representative's office said the prospective pact is set to include market access for American goods, economic security commitments, digital trade alignment and other provisions.
A Trump proclamation said the suspension followed Canada's commitment to remove the alleged discriminations or unequal impositions at issue.
Mark Carney said the prospective deal aims to address outstanding trade issues and provide more certainty and benefits for Canadian businesses, workers, farmers and families.
Trump said the Keystone XL pipeline may be revived, without giving details.
Oxford Economics identified cement, paper, printing, wood, clothing and electronic equipment manufacturers among sectors likely to be most affected.
Source note: AFP news report published on 19 August 2026 at 04:10:12 UTC.
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Canadian Prime Minister Mark Carney said there was “work still to be done” despite the US tariff pause.
Source note: AFP news report published on 19 August 2026 at 03:23:20 UTC.
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The US Trade Representative's office said the pact is set to include comprehensive market access for American goods, economic security commitments and digital trade alignment.
A Trump proclamation said the suspension followed Canada's expressed commitment to remove disputed measures.
Source note: AFP news report published on 19 August 2026 at 03:25:56 UTC.
Update
Trump linked the three-day reprieve to a deal that he said was subject to final documents.
Trump said the Keystone XL pipeline “may be awoken from the grave,” without giving details.
The White House had alleged discriminatory treatment by Canada against US alcohol, automobile and dairy products.
The planned duties would not apply to Canadian energy, potash or goods already facing sector-specific tariffs, but were set to hit products covered by the USMCA.
Trump's trade envoy Jamieson Greer said the tariffs aimed to hold Canada accountable for retaliation against the United States.
Source note: AFP news report published on 19 August 2026 at 02:53:36 UTC.
Update
Trump paused the rollout of fresh 50% tariffs on some Canadian goods for three days.
Trump said the reprieve was based on the United States and Canada having a deal, subject to finalisation of documents.
Source note: AFP news report published on 19 August 2026 at 02:30:04 UTC.
Update
The United States and Canada reached a deal to avert Trump's planned 50% tariffs.
Source note: AFP news report published on 19 August 2026 at 02:21:43 UTC.
Update
Mark Carney spoke by phone with Donald Trump on Tuesday afternoon about the trade negotiations.
The leaders also spoke Monday, according to the prime minister's office.
The talks were taking place hours before the planned tariffs were due to take effect at midnight.
Source note: AFP news report published on 18 August 2026 at 21:47:48 UTC.
Update
Politico reported that a deal to sidestep the planned tariffs awaited Trump's approval.
A White House official said any deal announcement would come directly from Trump and that other discussion should be regarded as baseless speculation until then.
Source note: AFP news report published on 18 August 2026 at 20:03:41 UTC.
Update
A spokesperson for Canadian Prime Minister Mark Carney confirmed to AFP that Carney spoke by phone with US President Donald Trump on Monday afternoon about the trade negotiations.
The US Trade Representative's office did not respond to AFP queries on the matter.
Trump's trade envoy Jamieson Greer said in July the tariffs aimed to hold Canada accountable for retaliation against the United States.
Source note: AFP news report published on 18 August 2026 at 16:17:16 UTC.
Uncertainty notes
Canada had not yet detailed the new measures to be announced Tuesday.
US automakers did not immediately comment on Trump's tariff statement.
Source
AFP news report published on .