Canada will announce retaliatory tariffs against U.S. on August 25, official say

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Canadian Prime Minister Mark Carney. File photo: The Canadian Press via AP.

Canada will announce retaliatory tariffs against the United States on Tuesday (August 25, 2026), an official familiar with the plans told The Associated Press , escalating a trade fight that has sharply worsened since negotiations with the Trump administration collapsed.

The official spoke on condition of anonymity because they were not authorised to discuss the plans publicly.

Prime Minister Mark Carney said on Monday (August 24, 2026) that Canada may need to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.

President Donald Trump escalated the dispute again on Monday (August 24, 2026), telling Canadian leaders to “fall in line” or face consequences “far WORSE” than tariffs already imposed and threatening new 50% tariffs on Canadian vehicles, auto parts and steel.

Mr. Carney accused Washington of trying to subordinate Canada and said U.S. trade demands had confirmed Canada's fears that the United States was seeking to dismantle major Canadian industries.

“An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we're going to accept,” Mr. Carney said.

“We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminium,” Mr. Carney said. “That was one of the main reasons we said no. It was a bad deal.”

The fiery words from both sides show how U.S.-Canada relations have deteriorated since Mr. Carney walked away from trade negotiations with the Trump administration late Friday (August 21, 2026), triggering the President's threatened 50% tariffs the next day on about $20 billion worth of Canadian goods.

Carney cast doubt on the U.S.'s reliability as a partner, saying Canada was finding reliable partners “everywhere in the world, except in the United States. Except in the United States. And Russia.”

Mr. Trump on Monday (August 24, 2026) came back with further tariffs, warning that he would impose them on Canada's auto industry beginning next year.

“Canada has been ripping off the United States of America for years,” Mr. Trump wrote on social media, criticising what he called the country's “ridiculously high tariffs” on American farmers.

Mr. Carney said Washington's auto-sector proposals would gradually have the effect of dismantling Canadian production.