Topics

U.S., Canada fail to reach trade deal by deadline, new tariffs to take effect

  • The Canadian Press staff

  • Canadian Press

  • August 21, 2026

Canada-U.S. Trade Minister Dominic LeBlanc, left, and United States Trade Representative Jamieson Greer, speak to reporters in Washington, D.C., on Wednesday, Aug. 19, 2026, the day after the Trump administration temporarily delayed tariffs on Canada. THE CANADIAN PRESS/Kelly Geraldine Malone

WASHINGTON -- U.S. Trade Representative Jamieson Greer says the U.S. and Canada have failed to reach a trade deal.

He says Canada declined to finalize a trade deal under terms agreed to earlier in the week and that a new round of tariffs will kick in at 12:01 Saturday.

In a statement, Prime Minister Mark Carney says progress in talks has not met Canada's objectives and he has suspended negotiations and directed Canadian negotiators to return to Ottawa.

He says the U.S. intends to impose a 50 per cent tariff on roughly $28 billion of Canadian goods at midnight and Canada will respond with matching tariffs, dollar for dollar.

Carney also says the government will introduce measures to support Canadian workers and businesses in the coming days.

Earlier Friday, Trump said a deal with Canada was "moving along," though Canada-U.S. Trade Minister Dominic LeBlanc told reporters there was still "more work to do" to seal a trade deal with the United States.

This report by The Canadian Press was first published Aug. 21, 2026.