Tuesday, August 25, 2026

Canada retaliates as US tariffs hit 50%

Canada - US dispute
AI-generated image.

Canada has announced reciprocal trade measures against the United States after negotiations failed to prevent Washington from imposing tariffs of up to 50% on a range of Canadian goods.

Prime Minister Mark Carney said Ottawa would respond on a “dollar-for-dollar” basis, arguing that changes made by the US late in negotiations had undermined the prospect of an agreement.

The latest round of talks lasted three days and followed months of negotiations aimed at resolving trade disputes between the neighbouring countries. US President Donald Trump had delayed implementation of the new tariffs from August 19 to allow additional time for an agreement to be reached.

Washington ultimately invoked Section 338 of the Tariff Act of 1930, a rarely used provision allowing tariffs of up to 50% against countries considered to be discriminating against US commerce.

The new duties reportedly affect about 5% of Canadian exports to the US and cover products including plywood, cement, wine and hockey sticks.

The Trump administration maintains that Canada and other major trading partners have benefited from unfair access to the American market. US Trade Representative Jamieson Greer said Washington had offered Canada favourable treatment, but accused Ottawa of introducing new demands and reversing previous commitments during the final stages of negotiations.



Canada disputes that account. Carney said the US had made last-minute changes that were “unfair” and “uneconomic”, while Ottawa had also been seeking relief from existing American tariffs on Canadian steel, aluminium, automobiles and lumber.

Despite the breakdown, the two governments had earlier reported progress on several issues. Trump said the countries had agreed to revive the Keystone XL pipeline project, intended to carry Canadian oil into the United States, while Carney had described the broader trade negotiations as advancing.

The escalating tariff dispute has prompted concern from businesses on both sides of the border. Canadian Chamber of Commerce president Candace Laing described the failure to reach an agreement as damaging to North American competitiveness, warning that American consumers could face higher prices while Canadian companies risk losing customers and investment.

Carney said his government would announce further measures to assist Canadian workers and businesses and would continue efforts to diversify Canada’s international trade relationships.

Support DTNZ

DTNZ is committed to bringing Kiwis independent, not-for-profit news. We're up against the vast resources of the legacy mainstream media. Help us in the battle against them by donating today.

No login required to comment. Name, email and web site fields are optional. Please keep comments respectful, civil and constructive. Moderation times can vary from a few minutes to a few hours. Comments may also be scanned periodically by Artificial Intelligence to eliminate trolls and spam.

5 COMMENTS

  1. “If the American people ever allow private banks to control the issue of their currency first by inflation then by deflation the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered… I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people to whom it properly belongs.”

  2. Does anyone spot the logical trend with these increasing “tariff” percentages? Where is the real news? Why does the media continue avoiding reality?

    The reality is that the USA is completely munted in every way. Militarily. Economically. Their worsening desperation is obvious in everything they say.

    Diesel over there ($5.99 per gallon) now costs more than ordinary petrol ($4.09 per gallon). https://halturnerradioshow.com/index.php/news-selections/national-news/diesel-hits-6-in-northeast-pennsylvania

    Dumb yanks have been well and truly humiliated internationally https://www.tehrantimes.com/news/529353/Iran-shifts-to-offensive-posture

    30 September 2026 is the final deadline for int’l coalition withdrawal from Iraq https://en.ypagency.net/403022

  3. The situation is about five minutes away from midnight. The United States has gone from a powerhouse of manufacturing and construction to an over legislated bureaucratic mess. It’s a nightmare for business. More paperwork and no pratical outcome for manufacturing and employment.

    Suddenly moving payment of debt onto Canada or any nation will only reduce or end trade.

    I think of New Zealand’s situation in 1984:when NZ overspent. David Lange came too power and within days devalued th NZ dollar by a whopping 20%. That move made our exports cheaper for nations to buy and our imports more expensive.

    When you think about it the knock on effects were exports became cheaper and our citizens became employed. Yes we had to pay more for things from other nations but in time it worked.

    The targeted tariffs on Canada by the US will only result in less trade between these two countries. A loose loose result.

    The current NZ government has concentrated on zero tariffs between some nations. Thats a good thing. But its not enough to make the food manufacturing move into high gear.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Wellington
clear sky
12.8 ° C
13.8 °
12 °
69 %
8.8kmh
1 %
Mon
14 °
Tue
18 °
Wed
14 °
Thu
13 °
Fri
12 °




Trending

Sport

Daily Life

Opinion