Updated August 22, 2026 @ 12:43am
Prime Minister Mark Carney said Canada will retaliate with matching dollar-to-dollar tariffs after trade talks with the U.S. failed to reach a deal before a midnight deadline.
U.S. Trade Representative Jamieson Greer announced late Friday in a call with reporters that the U.S. and Canada had "declined" to finalize a tentative agreement and that a new round of tariffs would kick in as scheduled at 12:01 Saturday.
Prime Minister Mark Carney issued a statement shortly after, saying progress in talks has not met Canada's objectives and that he has suspended negotiations and directed Canadian negotiators to return to Ottawa.
Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette have been in Washington for nearly two straight weeks trying to get to a deal, including multiple hours of talks with Greer on Friday.
"They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute," said Carney.
"However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal."
Carney said the U.S. intended to impose a 50 per cent tariff on roughly $28 billion of Canadian goods at midnight and that Canada will respond with matching tariffs, dollar for dollar.
Carney also said the government will introduce measures to support Canadian workers and businesses in the coming days.
Earlier Friday Trump said a deal with Canada was "moving along," though LeBlanc told reporters there was still "more work to do" to seal a trade deal.
After days of silence, Ontario Premier Doug Ford said on social media late Friday that the prime minister has his "full support" for a strong response.
"As we fight to protect Canadian sovereignty and economic security, everything needs to be on the table," said Ford. "Ontario is ready to do its part."
Candace Laing, president and CEO of the Canadian Chamber of Commerce and member of the prime minister's advisory committee on Canada-U.S. economic relations, said in a statement Friday that this will be a "body blow to North American competitiveness in this self-defeating trade saga."
"A whopping, non-absorbable tariff is not sustainable or viable for business," she said. "For a small Canadian exporter operating on tight margins, this isn't an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford."
Laing said Americans will see their costs go up, while Canadians will see customers, investment and small businesses disappear.
This report by The Canadian Press was first published Aug. 22, 2026.
