US hits Canada with 50% tariffs after trade talks collapse

The United States imposed 50% tariffs on $20 billion worth of Canadian products on Saturday, August 22, 2026, after last-ditch negotiations failed to produce a trade agreement. The tariffs, affecting about 5% of Canada's annual exports to the U.S., include goods such as alcohol, hockey skates, and tongue depressors. Canadian Prime Minister Mark Carney accused Washington of making unfair last-minute changes to the proposed deal and announced Canada would match the tariffs dollar for dollar. The breakdown came after a three-day extension granted by President Donald Trump, with both sides blaming each other for the collapse. The trade conflict has escalated tensions between the historic allies, who traded $880 billion in goods and services last year.