Mark Carney rejects US trade deal amid escalating tensions

In August 2026, Prime Minister Mark Carney of Canada rejected a trade deal with the United States, citing unacceptable last-minute changes. This decision led to the U.S. imposing 50 percent tariffs on Canadian goods worth $20 billion. In retaliation, Canada announced it would implement dollar-for-dollar tariffs on U.S. products, particularly in the steel and dairy sectors.