USA

Canada Rejects Trump’s Demands as Tariff Dispute Escalates

23 August 2026 20:08 PM

NEWS DESK

US President Donald Trump had delayed for three days a decision to impose 50% tariffs on some Canadian products, hoping Ottawa would agree to a deal on his terms within the grace period.

But that did not happen.

Even after the deadline expired, Canadian Prime Minister Mark Carney refused to give in to Trump’s demands. Instead, he announced new Canadian tariffs on a range of US products, further escalating the trade dispute between the two neighbours.

Trump, who has styled himself as a “deal-maker,” reacted angrily to the failure of the negotiations and sharply criticised Canada, AFP reported on Sunday.

In a post on his Truth Social platform, Trump said Canada was seeking to enjoy the benefits of a US state despite being a separate country.

He also accused Canada of imposing heavy tariffs on American farmers for years, saying such treatment would no longer be allowed.

On Saturday, Carney announced that Canada would impose new tariffs on US imports, including steel, milk and dairy products, from September 8.

Meanwhile, after the three-day suspension expired on Saturday, the US 50% tariff on Canadian goods worth $20 billion came into effect.

The affected products account for around 5.5% of Canada’s total exports to the United States.

Trade tensions between the two major economic partners have intensified since Trump returned to office in January last year. His sweeping tariff programme has disrupted the decades-old free-trade relationship between Canada and the United States.

Canada has been seeking an agreement under which Washington would withdraw or reduce tariffs imposed on key sectors.

The United States, meanwhile, has been demanding several concessions from Canada. These include removing Canadian retaliatory tariffs on US automobiles and changing dairy-product quotas to provide greater access to the Canadian market for US cheese producers.

Washington has also demanded that Canada lift restrictions on sales of US alcohol that several Canadian provinces imposed last year in retaliation for Trump’s tariffs.

The latest developments suggest that the tariff war between Ottawa and Washington is unlikely to be resolved easily, with both sides showing little willingness to back down.

Canada US Tariff Dispute