Canada and US at odds over tariffs, Carney vows to retaliate

Trade talks between Canada and the United States collapsed by August 22, 2026, and the US imposed 50% tariffs. Mark Carney said Canada will respond dollar for dollar, with retaliatory trade measures on September 8. He called the tariffs a 'miscalculation' and said his nation is 'at war' with the US. Bloomberg wrote that Canada's demand for tariff relief on trucks imperiled the talks.

Provincial premiers presented a united front behind Carney, but divisions emerged on next steps, and Alberta's Smith questioned the retaliation plan. Jivani called the response an 'overreaction' that will 'accelerate conflict'.