US-Canada trade deal collapses as Trump’s 50% tariffs go into effect

Published August 22, 2026 9:15am ET



A trade deal between the United States and Canada fell apart in the eleventh hour ahead of President Donald Trump’s Friday night deadline, pushing the Trump administration’s 50% tariffs on its northern neighbor into effect overnight.

Canada will now face a 50% tariff on about $28 billion worth of Canadian products imported into the U.S. Canadian Prime Minister Mark Carney announced shortly before midnight on Friday that his country will match these tariffs dollar for dollar on U.S. goods moving into Canada.

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