PM Carney says Canada intends to match U.S. tariffs 'dollar for dollar,' after suspending trade negotiations

By CTVNews.ca Staff

Updated: August 22, 2026 at 1:02a.m. EDT

Published: August 21, 2026 at 9:11a.m. EDT

A new round of punishing U.S. tariffs on Canada went into effect early Saturday morning, as Prime Minister Mark Carney suspended trade negotiations minutes before the deadline.

The announcement came following a three-day extension given by U.S. President Donald Trump to give trade representatives from both sides more time to negotiate a deal.

The 50 per cent tariffs target US$20 billion worth of Canadian goods, including cement and hockey sticks.

Here is everything that happened on Aug. 21:

## PM Carney says Canada intends to match the U.S. tariffs 'dollar for dollar'

Prime Minister Mark Carney's office released a statement ahead of the deadline saying he suspended trade negotiations with the United States, setting in motion the 50 per cent tariffs on Canadian goods.

"I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa. They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute," the PMO said in the statement.

"However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal."

"At midnight tonight, the U.S. intends to impose a 50% tariff on roughly $28 billion of Canadian goods," the statement read.

"Canada will match those tariffs dollar for dollar to protect our workers and businesses."

## Canada has declined to finalize the trade deal, 'upended' balance: Greer

In a statement released Friday night, U.S. Trade Representative Jamieson Greer said Canada has declined to finalize the deal and "upended" the balance reached during the negotiations.

"Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days," the statement said.

"In addition, Canada is continuing to maintain its prolonged retaliation against the United States, including, among other things, flat-out prohibitions on certain American goods and services."

The statement went on to say that Canada declined the deal despite the U.S. offering Canada "better treatment" and "significant tariff reductions" on steel, aluminum, autos and lumber in exchange for concessions.

"The U.S. offer was also forward-looking and included a historic economic and national security partnership to cooperate on export controls, combat transshipment, enhance digital trade, and align certain external tariffs," Greer said in the statement.

"This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7."

## 'Tariff for tariff, dollar for dollar': Ford extends support for prime minister

Ontario Premier Doug Ford extended his support for Prime Minister Mark Carney in a social media post, after the trade negotiations were suspended Friday night.

"Team Canada needs to stand together more united than ever before," Ford said.

"The prime minister has my full support for a strong response—tariff for tariff, dollar for dollar. As we fight to protect Canadian sovereignty and economic security, everything needs to be on the table. Ontario is ready to do its part."

[Ford X post, August 22, 2026]

## 'We'll keep fighting': Eby

B.C. Premier David Eby, who was advocating for relief on softwood lumber tariffs, also responded to the news, saying Canada's "politeness should never be mistaken for weakness."

"We didn't ask for this, but we'll keep fighting for as long as it takes," Eby added.

[Eby X post, August 22, 2026: "British Columbians will always stand with Canada. Our politeness should never be mistaken for weakness. We'll always defend ourselves. We didn't ask for this, but we'll keep fighting for as long as it takes."]

## As tariff deadline approaches, dynamic 'not going well:' sources

With less than two hours until new 50 per cent tariffs are set to be imposed on a variety of Canadian goods, two sources close to the negotiations tell CTV News that there are some challenges with the dynamic in negotiations, particularly with Commerce Secretary Howard Lutnick who is involved in the final hours of talks.

According to the sources, the talks are focused on "just a couple" of outstanding issues, but some of the personal dynamics with Lutnick, who appears to have lingering feelings over recent issues with the Gordie Howe International Bridge, is a challenge. The opening of the bridge was delayed for weeks because of U.S. complaints over toll governance and revenue sharing, after which Canada agreed to share revenues earlier than planned.

Canada's chief trade negotiator Janice Charette remains at the United States Representative's office in Washington as of late Friday night as talks continue.

## 'Working up until the last minute': LeBlanc

"We have more work to do," LeBlanc told reporters as he exited the U.S. trade representatives office around 7:30 p.m. on Friday.

"We're going to continue working up until the last minute. Our job is not finished. Canadian workers, Canadian businesses expect us to do all of this important work" he said.

## 'I only make good deals,' Trump says

"I only make good deals," Trump told reporters on the tarmac at Joint Base Andrews in Maryland.

He was asked about progress toward a deal with Canada. He said talks were "moving along," and that his team has a "good relationship" with Carney.

He didn't offer details on the prospective deal.

"We have to take care of our farmers."

## A 'low-key horrible' deal: trade policy expert

Some concern about the deal still persists, an international trade policy researcher told CTV News Channel.

"For some of the leaks we've seen, it doesn't sound like it's going to be a good deal," Stuart Trew said hours before the deadline on Friday.

"In fact, as my niece might say, it sounds 'pretty low-key horrible'" Trew said, referring to tariffs that will remain on steel exports to the U.S.

"Aluminum (and) the auto tariffs, at least according to the leaks, being at 15 per cent would be – in the short-to-medium term – pretty unsustainable for the industry."

Trew said such a deal would inevitably "eat into the reason to make any vehicles in Canada whatsoever."

## LeBlanc on trade deal: 'We're very close'

Canada-U.S. Trade Minister Dominic LeBlanc shared an update following a more than three-hour meeting with U.S. Trade Representative Jamieson Greer in Washington on Thursday, saying they are "very close" to an agreement.

"We continue to make progress, and we're going to stay here and do the work that's necessary until we get to that point," LeBlanc said to reporters, while also describing the meeting as "long" and "detailed."

## PM tried to 'out-tough' Trump: Vance

U.S. Vice-President JD Vance said Carney tried to "out-tough" Trump in trade negotiations and credited Conservative MP Jamil Jivani as an "effective advocate" in the deal talks.

In audio from a Wednesday fundraiser in Southampton, N.Y., which was provided to The Canadian Press by a source who attended the private function, Vance said Carney is a "very sweet guy" and he gets along with him quite well.

But Carney "comes in and puffs his chest out and says, 'I'm going to, like, out-tough Donald Trump,'" he added.

"It's hilarious because Carney presents this as some victory for Canada when fundamentally, like, they climb down on a lot of issues," Vance told the room.

[The Canadian Press]

## Poilievre to Carney: 'Don't take a bad deal'

Conservative Leader Pierre Poilievre repeated his call Friday for Prime Minister Mark Carney not to "take a bad deal."

"Mr. Carney promised in the last election that he would be elbows up. He promised that he would negotiate a win," Poilievre said in a press conference in Kitchener, Ont. on Friday. "In his words, he promised, and I quote, that he could 'handle Trump.' He promised he would not accept a bad deal. Mr. Carney, keep your promise. Fight for Canada."