U.S. Imposes 50% Tariffs on Canadian Goods After Trade Talks Collapse; Canada Announces Retaliation

The U.S. imposed 50% tariffs on Canadian goods on August 22, 2026, after bilateral trade talks failed. Canada responded the same day, announcing retaliatory tariffs on U.S. steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, effective September 8, 2026. The escalation follows 18 months of conflict rooted in disputes over Canada's dairy supply management and provincial alcohol distribution systems.