

Market News · samer saeed · August 26, 2026
Trump Tariffs Ignite New Clash – Canada Reveals Its Response Tuesday
After both sides were very close last Friday evening to reach a trade agreement, the U.S.-Canadian negotiations that had been ongoing for several weeks collapsed, and a 50% tariff imposed by U.S. President Donald Trump on specific Canadian goods went into effect. Ottawa is expected to announce a package of counter‑tariffs on Tuesday evening, turning the historic relationship between the two sides into a raging trade war.
The U.S. 50% tariff on specific goods took effect on Saturday, and Trump threatened to impose additional duties on Canadian cars starting next year, potentially reaching 50%. The current U.S. duties on Canadian cars are 25%, specifically on non‑U.S. components, while Washington imposes 50% duties on steel imports into the United States in general.
On Saturday, Canadian Prime Minister Marc‑Édouard Carignan described the proposed agreement with Washington as \"bad\", noting that the counter‑tariffs would target U.S. steel and dairy industries and would include sectors such as agricultural equipment, paper, and electronics.
On the other hand, Carignan said that U.S. negotiators also issued \"unacceptable threats\" aimed at the French language and \"Quebec culture\", referring to the French‑speaking province in eastern Canada.
Trump’s response on Tuesday to Carignan’s remarks about Quebec and the French language was that he would \"never interfere with Canadians speaking French! In fact, I have never even considered doing such a stupid thing.\"
The United States remains Canada’s largest trading partner by a wide margin, accounting for about 70% of Canada’s total exports. Canada ranked second among the United States’ largest trading partners in goods trade this year, after Mexico, according to government data.
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