WASHINGTON, 22 August, 2026 (Nosheen): The United States and Canada have failed to reach a trade agreement, with Washington announcing plans to impose 50% tariffs on certain Canadian imports, escalating trade tensions between the two long-time allies. A senior Trump administration official said tariffs under Section 338 covering around $20 billion worth of Canadian goods would take effect shortly after midnight on Saturday. Canadian Prime Minister Mark Carney said he had suspended trade negotiations with the United States and directed Canadian negotiators to return to Ottawa. He also said Canada would respond to the new US tariffs on a dollar-for-dollar basis. The decision followed three days of negotiations in Washington between Canada’s Minister for Trade with the United States, Dominic LeBlanc, and US Trade Representative Jamieson Greer. Carney said Canada’s negotiators had worked in good faith to protect the interests of Canadians but described last-minute changes in the US proposals as unfair and economically damaging. Although the new measures affect a relatively small share of Canadian exports, they add to existing US tariffs on Canadian steel, lumber and automobiles. The latest tariffs could put further pressure on Canada’s fragile economic recovery and complicate broader negotiations between the two countries over a future free-trade arrangement. The new measures will apply regardless of whether Canadian goods qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), which has previously shielded much of Canadian industry from US tariffs.The latest development marks a further escalation in trade tensions between the two neighboring countries and is expected to affect their economic relations in the coming months.