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Canada will impose retaliatory tariffs of up to 50% on around 900 US products worth approximately C$28 billion, or US$20 billion, beginning 8 September 2026. The measures follow the collapse of trade talks and US tariffs imposed by Donald Trump on Canadian goods, with targeted imports including steel, aluminum, furniture, clothing, food, appliances and machinery. Canada says the response is proportionate and strategic and will provide C$7.5 billion in support to affected workers and businesses. The dispute is expected to raise costs, disrupt established supply chains and increase consumer prices, while the White House and Trump blame Canada for unreasonable negotiating demands. Canadian Prime Minister Mark Carney has accused Trump of seeking to damage Canadian industries, although officials on both sides have recently adopted more diplomatic language in hopes of restarting negotiations. The escalation also raises questions about the future of the USMCA trade agreement.