US Imposes 50% Tariffs on Canadian Goods After Trade Talks Collapse

The United States imposed a new 50 percent tariff on approximately $20 billion worth of Canadian goods on Saturday, August 22, 2026, after last-minute trade negotiations collapsed, prompting Prime Minister Mark Carney to declare Canada was "at war" and announce retaliatory measures. The breakdown in talks marks a significant escalation in the trade dispute between the longtime allies. The new U.S. tariffs, which took effect just after midnight, apply to a wide range of products including furniture, plastics, plywood, electrical equipment, and hockey sticks. They represent a sharp increase from previous duties and are expected to impact about 5.