Canada strikes back in a trade war with the U.S.

On 26 August 2026, Canada announced retaliatory tariffs on US products as its trade war with the United States deepened. The US is weighing further trade measures against Canada after the retaliation.

Canadian provinces were divided over how to respond. Alberta and Saskatchewan pushed back on calls for export levies on oil and potash, and Alberta's premier called proposals to use Canadian oil as leverage in the trade war “disastrous”. The Wall Street Journal reported that the US and Canada are bracing for a prolonged dispute, and Handelsblatt reported that Canada is preparing for two years of tariff conflict, lasting until the end of Trump's term.