Bilateral trade talks have broken down as Ottawa says it would retaliate and match US tariffs affecting US$20 billion of Canadian goods
2-MIN READ2-MIN ListenAgence France-PressePublished: 11:35pm, 23 Aug 2026The Trump administration on Sunday warned that Canada would be “foolish” to think it could win a trade war with the United States, predicting a “devastating” impact on its northern neighbour.Negotiations between Washington and Ottawa broke down late Friday, putting into force new 50 per cent US tariffs impacting about US$20 billion worth of Canadian goods, or 5.5 per cent of Canadian exports to the US.
Canada in retaliation said it would match US tariffs, with new levies notably targeting the US steel and dairy industries to take effect on September 8.
The United States currently accounts for roughly 70 per cent of Canadian exports.
“We’re great trading partners, right? But Canada gets the benefit of trading with the US way more than the US gets the benefit of trading with Canada,” he told the “Fox News Sunday” talk show.
