The trade war between the U.S. and Canada is still ongoing due to failed negotiations. Let’s see the new updates from August 2026 until today.
In August 2026, President Trump imposed 50% tariffs on 5% of Canadian goods imported into the country, effective 22 August, affecting Canadian goods worth $20 billion. Canada then announced its plan to retaliate after last-minute negotiations failed to lower trade tensions between the U.S. and Canada.
On 8 September 2026, Canada began increasing tariffs on U.S. products, ranging from 15% to 50% on hundreds of products. The value of taxable goods was about $20 billion USD, which the Canadian prime minister expects will strengthen Ottawa’s position in negotiations with President Trump.
For U.S. steel items, tariffs were increased from 25% to 50%, and additional tariffs were imposed on consumer products such as motorcycles, cosmetics, cheese, and more.
On the other side, on the same day, the U.S. said it banned most alcoholic beverages, dairy products, and motorbikes. This new ban will take effect within the next 3 weeks in response to Canada’s retaliation.
In Canada, the country is willing to accept short-term economic impacts to attract investment, develop infrastructure, and gain more export partners. Canada wants to reduce its reliance on exports to the U.S., as about 70% of exports go there. If it can reduce that reliance, it can protect local businesses and Canadian employees.
Cre: Paul Wiseman, Rob Gillies, and The Associated Press (Fortune, 2026), Bạch Dương (laodong, 2026) & Bloomberg News (Financial Post, 2026)