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A timeline of Donald Trump's trade war with Canada
Trump raises duties on Canadian goods as negotiations stall, while Canada’s retaliation and legal challenges continue to reshape cross-border trade.
On August 20, 2026, trade tensions persisted between Canada and the United States as President Donald Trump maintained aggressive tariff policies despite stalled negotiations.
Trump pushed tariffs on Canadian goods to 35 per cent from 25 per cent on July 31, citing border security failures, while separate executive orders imposed 50 per cent duties on specific items like honey and hockey sticks.
The B.C. Lumber Trade Council reports that softwood lumber taxes now exceed 45 per cent, while United States Trade Representative Jamieson Greer stated the U.S. would not renew the Canada-United States-Mexico Agreement "in its current form."
Calling the measures "unlawful and unjustified," Prime Minister Mark Carney announced Canada would enact retaliatory tariffs on $29.8 billion in U.S. goods, targeting steel, aluminum, and consumer products.
Despite a face-to-face meeting in May where Trump offered praise, he gave no indication of dropping tariffs in the near future, creating significant uncertainty for Canadian businesses.