U.S. tariffs hit $28 billion in Canadian goods; Carney vows dollar-for-dollar retaliation
After failed negotiations, 50% tariffs on everything from hockey equipment to smartphones took effect Saturday. Canada is matching them.
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The United States imposed a 50 per cent tariff on roughly $28 billion in Canadian exports Saturday after negotiations between the two countries broke off just before midnight Friday.
Prime Minister Mark Carney suspended trade talks with the United States and recalled the Canadian negotiating team, saying the U.S. made "unfair" last-minute changes to the deal. Carney said Canada is planning to match the tariffs "dollar for dollar." He is set to speak to reporters this morning before meeting with cabinet at 12:15 p.m. and premiers at 1:30 p.m.
The tariffs affect a sprawling list of goods grouped loosely around three categories: dairy, alcohol, and motor vehicles. But the actual tariff orders are broader. Ice hockey and field hockey equipment, beer, wine, liquor, cider, milk, cream, whey, honey, down feathers, essential oils, perfumes, candles, textiles, clothing, smartphones, cameras, refrigerating equipment, vacuums, and various other manufactured goods all face the new rate.
Trump threatened the tariffs in July to pressure Canada on several issues flagged as irritants to the U.S., including provincial bans on alcohol imports (still in effect everywhere but Alberta and Saskatchewan), federal auto tariffs on some American exports, and quotas on tariff-free U.S. dairy. The new tariffs were initially set to take effect August 19, but Trump delayed the implementation by three days to allow more time for talks.
U.S. Trade Representative Jamieson Greer said Canada "declined to finalize" an agreement and made "new demands and walk backs."
Ian Lee, associate professor at Carleton University's Sprott School of Business, expects the escalation will be "very costly" for Canada. He cited Ontario-focused research suggesting higher prices, higher unemployment, and increased bankruptcies are likely. The auto and steel sectors were the main stumbling blocks in negotiations, Lee said.
Premiers across Canada have issued strong responses. New Brunswick's Susan Holt said "New Brunswick stands strong and united with Team Canada as we fight for a fair deal," while P.E.I. Premier Rob Lantz called for the same unity needed throughout negotiations to continue now.
Which Canadian goods will be prioritized in retaliation, and when will the tariff list be announced?
How will the tariffs affect Calgary's tech sector and other local industries that rely on cross-border trade?
We'll update this story as answers emerge.
The facts
When did U.S. tariffs on Canadian goods take effect?
The United States imposed a 50 per cent tariff on roughly $28 billion in Canadian exports on Saturday, August 22, 2026.
What products are affected by the new tariffs?
Ice hockey and field hockey equipment, beer, wine, liquor, cider, milk, cream, whey, honey, down feathers, essential oils, perfumes, candles, textiles, clothing, smartphones, cameras, refrigerating equipment, and vacuums all face the 50 per cent tariff rate, along with various other manufactured goods.
How is Canada responding to the tariffs?
Prime Minister Mark Carney suspended trade talks with the United States and said Canada is planning to match the tariffs dollar for dollar.
