Canada Set to Announce Retaliatory Tariffs on US Goods

August 25, 2026 | 08:50 pm

TEMPO.CO, Jakarta - Canada is set to announce retaliatory tariffs against the United States on Tuesday, as relations between the neighbors nosedived following failed trade talks last week, according to DW. 

Here's what you need to know:

- Washington ‌and Ottawa were racing to reach an agreement before U.S. President Donald Trump's steep new U.S. tariffs, announced in July, were due to take effect

- Talks broke down days after the U.S. President announced the neighbors were close to agreeing to a trade deal

- The collapse in negotiations triggered Trump's threatened 50 percent tariffs on about $20 billion worth of Canadian goods the next day 

- Canada moved to announce its own retaliatory tariffs effective September 8

Why is Canada imposing new tariffs?

While the U.S. and Canada have shared one of the world’s largest trade relationships, the recent talks signal a breakdown in relations.

"An attitude at the negotiation table that Canada is a subsidiary of the United States" is "not something we’re going to accept," Canadian Prime Minister Mark Carney said.

"We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum," Carney said, opting for an even blunter approach in French. "That was one of the main reasons we said no. It was a bad deal."

Finance Minister Francois-Philippe Champagne and three other Cabinet ministers are expected to unveil Canada's response on Tuesday.

What did the U.S. say?

Donald Trump returned to the topic of Canada early on Tuesday on social media, claiming the U.S. was mulling renaming Lake Ontario, the only one of the five North American Great Lakes named after a Canadian territory. 

"The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don't expect to doing [sic] much business with them any longer," Trump wrote. 

His administration "renamed" the Gulf of Mexico as the Gulf of America soon after Trump returned to the White House last year — a change that almost nobody besides the U.S. government has implemented. Even U.S. tech giant Google shows it as the Gulf of Mexico first on its maps for users everywhere but in the U.S.

A day earlier, Trump had threatened he would impose a 50 percent tariff on Canadian automobiles, car parts and steel from January 1, 2027, and took to social media to unleash a tirade against the historic partner.

"On trade, ‌and in other ways, also, ‌they are among the worst nations in the world to deal with. They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!" the US president said.

Canada relies heavily on the U.S. as its top trading partner, with American-bound exports making up 70 percent of the country's total. The relationship runs both ways, too: government data shows Canada was the second-largest U.S. trading partner in goods this year, just behind Mexico.

No further negotiations are currently scheduled.

Read: Trump Threatens 50% Tariff on Canadian Autos, Steel From 2027

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