Chicago – August 22, 2026
Canada has suspended trade negotiations with the United States after last-minute changes to Washingtonâs proposed agreement failed to satisfy Ottawa. Prime Minister Mark Carney said the changes were unfair and that Canada would match any new U.S. tariffs âdollar for dollarâ to protect Canadian workers and businesses.
The breakdown came as President Donald Trumpâs administration prepared to impose 50% tariffs on about $20 billion of Canadian goods. The affected products include items such as hockey equipment and medical supplies.
The two countries had appeared close to an agreement earlier in the week. Negotiators had discussed reducing U.S. tariffs on Canadian automobiles and cutting metals tariffs, but disagreements remained over issues including Canadian restrictions on U.S. alcohol and market access.
The latest dispute risks further damaging economic relations between two closely integrated trading partners and could increase costs for businesses and consumers on both sides of the border.
