Canada-US Trade Talks Collapse, Ottawa Vows 'Dollar-for-Dollar' Retaliatory Tariffs

06:17 AM EDT, 08/24/2026 (MT Newswires) -- Canada and the US are heading for a fresh trade confrontation after last-minute negotiations collapsed late Friday, prompting Canada to promise "dollar-for-dollar" reciprocal tariffs on American goods. Canadian Prime Minister Mark Carney suspended talks, saying last-minute changes to US proposals were "unfair" and "uneconomic." The US blamed Canada for the end of the talks, adding that Carney rejected terms agreed earlier in the week. "You're at war when you're attacked, and we got attacked," the Canadian prime minister told reporters over the weekend. Canada plans to introduce counter-tariffs on Sept. 8 on US goods such as steel, appliances and electronics. As of Saturday, Canada is subject to US 50% tariffs on specific goods worth C$28 billion, including dairy products, cement and hockey equipment, in addition to existing ones on lumber and aluminum. The breakdown followed weeks of negotiations over threatened US tariffs. Earlier last week, there was optimism when President Donald Trump paused the measures, saying the two countries were close to reaching a "very good" deal. Carney had also spoken of progress in the talks. Negotiators had reportedly also considered reducing US tariffs on Canadian steel and aluminum, as well as Canadian automobiles. "Canada wants the benefits of being a State, without being one!!!," wrote President Trump in a Sunday Truth Social post. The collapse of these talks has also raised questions over the future of the North American trade agreement between the US, Canada and Mexico, known as the USMCA in the US and as CUSMA in Canada. Signed by Trump during his first term, the pact governs around $2 trillion in annual trade in goods and services between the three countries. Trump declined to renew the agreement this summer after Canada and Mexico formally requested a 16-year extension.