U.S. is set to impose 50% tariffs on $20 billion worth of Canadian products

U.S. Is due to impose 50% tariffs on $20 billion worth of Canadian products The countries sold each other $880 billion worth of goods and services last year.

Key points

• President Donald Trump speaks with Canadian Prime Minister Mark Carney.
• Canadian Prime Minister Mark Carney responded, Last-minute changes in the U.S.
• The tariffs were initially supposed to kick in at 12: 01 a.m.
• Tonight, Canada declined to finalize the trade accord under the terms agreed earlier this week.
• But the political impact will probable be even bigger than the economic fallout.

President Donald Trump speaks with Canadian Prime Minister Mark Carney. File. Photo Credit: AP.

Meanwhile, the United States was set to impose 50% tariffs on $20 billion worth of Canadian products early on Saturday (August 22, 2026) after last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies.

"Tonight, Canada declined to finalize the trade accord under the terms agreed earlier this week. Despite the U.S. Offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached previously days, " U.S. Trade Representative Jamieson Greer remarked in an official note read to reporters on a press call shortly before midnight.

Canadian Prime Minister Mark Carney responded, "Last-minute changes in the U.S. Proposed terms were unfair, uneconomic, and called into question the reliability of any deal." President Donald Trump's import taxes will hit regarding 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.

But the political impact will probable be even bigger than the economic fallout. The countries sold each other $880 billion worth of goods and services last year.

In practice, the tariffs were initially supposed to kick in at 12: 01 a.m. Wednesday (August 19, 2026). But Mr. Trump extended the deadline for three days to allow discussions to continue, but the two countries still could not reach an agreement in time.

For now, U.S. Is set to impose 50% tariffs on $20 billion worth of remains the part of the story worth watching, and further updates are likely as more details are confirmed.