U.S., Canada Threaten Hiked Steel Tariffs After Failed Trade Negotiations
08/25/2026 - U.S. President Donald Trump said the U.S. will raise tariffs on Canadian autos, auto parts and steel to 50% from 1 January 2027, while Canada plans to raise tariffs on U.S. steel to 50% from 8 September 2026, following failed trade negotiations, reported the New York Times and Wall Street Journal.
The New York Times reported the U.S. and Canada failed to reach a trade deal over the weekend, resulting in Trump’s threat to raise tariffs to 50% on Canadian cars, car parts and steel, and rising trade tensions after weeks of negotiations between the countries.
On Saturday, Canada’s Prime Minister Mark Carney said the countries were “at war” over trade and promised retaliatory measures.
The Wall Street Journal reported that Canada’s set of retaliatory tariffs announced Tuesday were made to protect its domestic markets impacted by U.S. tariffs. In addition to steel, various other American products will be hit with tariffs between 15% and 50%.
Both countries said the other demanded changes to the trade deal that ultimately caused it to collapse.
For more information, click here and here.
The story is ongoing; more information will be provided as it develops.
On Saturday, Canada’s Prime Minister Mark Carney said the countries were “at war” over trade and promised retaliatory measures.
The Wall Street Journal reported that Canada’s set of retaliatory tariffs announced Tuesday were made to protect its domestic markets impacted by U.S. tariffs. In addition to steel, various other American products will be hit with tariffs between 15% and 50%.
Both countries said the other demanded changes to the trade deal that ultimately caused it to collapse.
For more information, click here and here.
The story is ongoing; more information will be provided as it develops.
