How to Lose a Trade War
Trade talks between the U.S. and Canada have collapsed, leading to the implementation of retaliatory tariffs. The author argues that the Trump administration's strategy of using economic pain to force concessions is failing because Canada's political leadership maintains strong public support.
Why it matters
The breakdown of trade relations between two major North American partners has significant implications for continental economic stability and geopolitical alliances.
Jim Watson / AFP / Getty August 22, 2026, 11:25 AM ET Share Save U.S.-Canada trade talks collapsed last night. Punitive Trump tariffs will now go into effect. Canada will reciprocate with retaliatory tariffs of its own.
The story may not be over. Donald Trump is notorious for issuing threats, then reversing them. Wars are on, off, on again, off again, then on a third time—but only as a “ little detour .” This is not an administration that thinks even one move ahead. But without a supersized Trump TACO , the U.S.-Canada impasse likely won’t resolve soon.
The Trump administration has one big idea about Canada: The U.S. is larger, stronger, and richer than Canada, so Canada must sooner or later surrender to Trump’s demands. That one big idea is wrong.
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