Chronicle Live
·25 Aug 2026
Trade war erupts as Canada retaliates against Trump with huge new tariffs
Canada will impose retaliatory tariffs on approximately US$20 billion of American goods, covering more than 700 products and including tariffs of up to 50% on steel, aluminium, furniture and clothing. The measures follow the collapse of trade talks and the Trump administration’s decision to impose 50% tariffs on Canadian goods. Prime Minister Mark Carney said the US demands threatened major Canadian industries and national cultural protections, while Canadian officials announced C$7.5 billion in support for affected workers and businesses. Donald Trump warned Canada to comply or face harsher measures, including possible additional tariffs on vehicles, car parts and steel. The dispute risks disrupting deeply integrated Canadian and US supply chains and increasing costs for businesses and consumers.