US halts talks with Canada after 50% tariffs hit US$20 billion in goods
US Trade Representative Jamieson Greer broke off talks with Canada on Friday after negotiators failed to avert US levies of 50% on about 5.5% of Canadian exports, worth US$20 billion.
Source: Channel NewsAsia · August 24, 2026 at 10:01 PM · AI-assisted report
Single-sourceWASHINGTON, 25 AUGUST 2026 —
US Trade Representative Jamieson Greer broke off talks with Canada on Friday after negotiators failed to avert US levies of 50% on about 5.5% of Canadian exports, worth US$20 billion.
Market Impact
Canada responded with retaliatory tariffs on Monday. Ottawa did not detail the counter-measures but said they followed Washington’s refusal to remove the duties on goods ranging from hockey sticks to cement.
Hours of negotiations led by Canadian Foreign Minister Dominic LeBlanc in Washington on Thursday and Friday yielded no breakthrough, according to Greer. The USTR told the New York Times on Saturday that the White House had offered to scrap the 10% softwood lumber tariff, cut the auto tariff to 10% and halve steel tariffs to 25% for most Canadian steel.
Donald Trump said on Monday he would double the auto tariff to 50%. “Canada has been ripping off the United States for years,” Trump said in a statement. “We don’t need Canada, they need us.”
The dispute also threatens the US-Mexico-Canada Agreement (USMCA). Trump has refused to renew the pact in its current form, forcing Ottawa to negotiate revisions while the tariff row escalates.
Cross-border supply chains—from autos to machinery—face added strain as input costs rise for manufacturers on both sides of the border.
Talks are scheduled to resume this week, but neither side has softened its stance, leaving the risk of wider tariffs and further disruption to trade.
Related: Washington