Canada has suspended trade negotiations with the United States, effective immediately, following what Prime Minister Mark Carney described as "unfair, uneconomic" last-minute changes to proposed terms and an imminent U.S. tariff imposition. The U.S. plans to levy a 50% tariff on approximately $28 billion of Canadian goods starting at midnight tonight, to which Canada will respond with matching tariffs dollar for dollar.
Prime Minister Carney announced the decision on August 21, 2026, stating that while significant progress had been made, it was insufficient to meet Canada's objectives. He emphasized that Canada's goal was always to secure the best deal for Canadians, "never a deal at any price or on any deadline." Carney noted that America's approach to trade relationships has changed, with tariffs being placed on close allies.
In response to the U.S. tariffs, Canada will introduce additional measures to support its workers and businesses, building on nearly $25 billion in aid provided over the past 18 months. This aligns with Canada's core economic strategy of strengthening its domestic economy and diversifying international partnerships.
The Prime Minister highlighted Canada's robust economic performance, including nearly $500 billion in major infrastructure projects and expanding export markets. Canada currently enjoys preferential access to 1.5 billion consumers, aiming to double this by year-end. The nation's economy is accelerating, projected to have the second-fastest growth in the G7 over the next two years, creating jobs at four times the U.S. rate. Foreign direct investment is at a two-decade high, and Canada ranks as the most attractive country globally for infrastructure investment. "Canada has what the world wants. And we will not allow any nation to determine our future," Carney affirmed.