Canada will announce retaliatory tariffs against U.S. on August 25, official say
Canada is preparing to announce retaliatory tariffs against the United States following the collapse of trade negotiations and threats of further duties from the Trump administration. The escalating economic dispute involves key sectors like automotive, steel, and critical minerals, with Canadian leadership signaling a unified front against U.S. pressure.
Why it matters
The breakdown of trade relations between the U.S. and its largest trading partner threatens to disrupt deeply integrated supply chains and could lead to significant economic instability in North America.
Canada will announce retaliatory tariffs against the United States on Tuesday (August 25, 2026), an official familiar with the plans told The Associated Press , escalating a trade fight that has sharply worsened since negotiations with the Trump administration collapsed.
The official spoke on condition of anonymity because they were not authorised to discuss the plans publicly.
Prime Minister Mark Carney said on Monday (August 24, 2026) that Canada may need to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.
President Donald Trump escalated the dispute again on Monday (August 24, 2026), telling Canadian leaders to “fall in line” or face consequences “far WORSE” than tariffs already imposed and threatening new 50% tariffs on Canadian vehicles, auto parts and steel.
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