Canada Walks Away From U.S. Trade Deal, Accepts 50% Tariffs on $28 Billion in Goods

Prime Minister Mark Carney announced August 21, 2026 that Canada would let the U.S. impose 50% tariffs on roughly $28 billion of Canadian goods rather than accept a deal he deemed insufficient. A proposed agreement would have cut auto tariffs from 25% to 15%. Carney walked away, calling the terms inadequate. Polling suggested many Canadians supported the decision.