Canada Suspends Trade Talks With Trump Administration, Vows Dollar-For-Dollar Response To US Tariffs | Sahara Reporters

Canada said the United States intends to impose the 50% tariffs at midnight on approximately $28 billion worth of Canadian goods.

Canada has suspended trade negotiations with the United States after the Donald Trump administration proposed imposing a 50% tariff on about $28 billion worth of Canadian goods.

The Canadian government announced the decision after what it described as last-minute changes to the proposed terms by the United States, saying the new conditions were “unfair, uneconomic” and raised concerns about the reliability of any potential trade agreement.

In a statement from the Office of the Prime Minister, the Canadian government said Prime Minister Mark Carney had directed the country’s trade negotiators to return to Ottawa following months of negotiations with the United States.

“However, that progress has not been enough to meet our objectives for Canadians,” the government said.

“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa.”

The Canadian government said its negotiators had continued working in good faith to protect the country’s economic interests but that the latest U.S. proposals made it impossible to continue negotiations under the existing circumstances.

“They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute,” the statement said.

“However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

The development marks another escalation in trade tensions between the two North American neighbours, whose economies have traditionally been deeply integrated.

Canada said the United States intends to impose the 50% tariffs at midnight on approximately $28 billion worth of Canadian goods.

In response, Ottawa said it would impose equivalent tariffs on affected U.S. products.

“At midnight tonight, the U.S. intends to impose a 50% tariff on roughly $28 billion of Canadian goods. Canada will match those tariffs dollar for dollar to protect our workers and businesses,” the government said.

The Canadian government said it would also introduce additional measures in the coming days to cushion the impact of the escalating trade dispute on businesses and workers.

My statement on Canada-U.S. trade negotiations: pic.twitter.com/65OuQH40ra
— Mark Carney (@MarkJCarney) August 22, 2026

It said the measures would build on nearly $25 billion in support already provided over the past 18 months.

According to the government, its trade negotiations with the United States had been guided by several objectives, including preserving tariff-free access for most Canadian businesses, providing greater stability for bilateral trade and securing lower U.S. tariffs for strategic Canadian industries.

Ottawa also said it wanted to protect small and medium-sized businesses from the impact of new tariffs while maintaining Canada’s economic independence and sovereignty.

“We have recognised from the beginning that America has changed, and that we will not return to our old relationship,” the statement said.

“Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.”

The Canadian government said it had therefore approached the negotiations with the understanding that its relationship with Washington had fundamentally changed.

It stressed that its objective was to secure the best possible arrangement for Canadian workers and businesses rather than accept an agreement simply to meet a deadline.

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

The government said it had made significant progress in recent weeks towards securing what it described as the strongest trade position with the United States.

However, Ottawa said the progress was insufficient to meet its objectives.

The suspension of the talks comes as Canada seeks to reduce its economic dependence on the U.S. market by expanding trade relationships with other countries.

The government said its broader economic strategy was focused on strengthening Canada’s domestic economy while diversifying its international partnerships.

“That strategy is working,” it said, noting that Canada was advancing nearly $500 billion in major infrastructure projects while working to open new export markets for Canadian businesses.

Ottawa also said Canada’s existing free trade agreements provide preferential access to about 1.5 billion consumers globally and that it expects to double that market access by the end of 2026.

The latest dispute highlights growing uncertainty about Canada’s traditionally close economic relationship with the United States under the Trump administration, with Ottawa now signalling it is prepared to retaliate while accelerating efforts to diversify its export markets.