Canada says it will match US tariffs 'dollar for dollar' as trade talks break down
Trade negotiations between the US and Canada have collapsed, leading to the implementation of new US tariffs on Canadian goods. In response, Canadian Prime Minister Mark Carney has announced that Canada will impose reciprocal 'dollar for dollar' tariffs on US imports.
Why it matters
The breakdown in trade relations between two of the world's largest trading partners threatens to disrupt supply chains and increase costs for consumers in both nations.
Image source, Reuters By Nadine Yousif , Senior Canada reporter and Toby Mann Published 22 August 2026, 05:13 BST Updated 3 minutes ago A fresh wave of US tariffs on a wide array of Canadian goods has come into effect as of midnight on Saturday after a last minute break down in trade talks.
Announcing the suspension of negotiations shortly before the Friday night deadline, Canadian Prime Minister Mark Carney said he would impose reciprocal tariffs on US goods "dollar for dollar".
Carney said "last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal".
Trade negotiators had been engaged in intense talks since July, after President Donald Trump threatened to impose a 50% levy on nearly $20bn (C$28bn) of Canadian imports by 19 August.
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