US imposes 50% tariffs on $28bn in Canadian goods as trade talks collapse

In a statement on August 21, Canadian Prime Minister Mark Carney said he had decided to suspend negotiations and instructed Canada’s negotiating team to return to Ottawa after what he described as last-minute changes to the US proposals.

"Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” Carney said.

According to the prime minister, the US planned to introduce the 50% tariffs at midnight, prompting Canada to respond with matching tariffs “dollar for dollar” to protect Canadian workers and businesses.

Carney said Canada had sought to preserve tariff-free access to the US market for most Canadian companies, reduce tariffs on key strategic industries and protect small and medium-sized businesses from further trade restrictions.

He said negotiations had made progress in recent weeks, but the proposed terms ultimately failed to meet Canada’s objectives.

“Throughout, our goal has been to secure the best deal for Canadians, never a deal at any price or on any deadline,” Carney said.

The Canadian government plans to announce additional support measures for workers and businesses in the coming days. Carney said Ottawa had already provided nearly C$25 billion in support over the past 18 months.

The prime minister also emphasized Canada’s efforts to reduce its dependence on the US by expanding trade with other markets. Canada’s existing free trade agreements give its businesses preferential access to 1.5 billion consumers, while the government expects that figure to double by the end of 2026.

Carney said Canada was also advancing nearly C$500 billion in major infrastructure projects and expanding export markets outside the US.

Earlier, Qazinform News Agency reported that Trump paused 50% Canada tariffs after trade deal.