Earlier this week, it seemed that trade negotiations between the United States and our neighbors to the north, Canada, were chugging along well. In fact, President Trump announced that he was extending the Wednesday deadline on tariffs going into effect by three days; the tariffs on Canadian goods were set to automatically rise to 50 percent Saturday.
Trump also hinted that part of the upcoming deal might include the revival of the Keystone XL pipeline. As my colleague Ben Smith wrote, though, the final hammered-out agreement would hang on the Canadians keeping their commitment to resolving three issues:
A White House proclamation issued Tuesday night formally moved the tariffs' effective date from August 19 to 12:01 AM ET on August 22.
The delay applies to three sets of duties Trump ordered July 20. They grew out of fights over American liquor, dairy products, automobiles, and auto parts.
Canada pulled American liquor from store shelves last year in retaliation for Trump's tariffs, but continued selling products from other countries without restriction. Trump also targeted Canada's dairy quotas for U.S. cheese and its vehicle tariffs.
Tuesday's proclamation says Canada has promised to address all three disputes. That was enough for Trump to move the deadline to Saturday.
READ MORE: Trump Hits Pause on Canada Tariffs With Keystone XL Back in Play
But late Friday night, Canada's Prime Minister Mark Carney told his negotiators to walk away from the table, triggering the 50 percent tariffs on almost $20 billion in Canadian goods. He said in a statement he will impose tariffs in retaliation:
Carney vowed to “match those tariffs dollar for dollar” in a statement released Friday evening on social media. He added that Canada’s government will present “additional measures” to support workers and business owners in the country in the coming days.
While the prime minister noted Canadian negotiators made “significant progress” in recent weeks, he said this had “not been enough to meet our objectives for Canadians.”
“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” he said in his statement.
“They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute,” Carney continued. “However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”
Then on Saturday morning, Carney shared during a press conference when the tariffs against the U.S. will start, and what they could include:
Canadian Prime Minister Mark Carney said Saturday morning that the country will enact retaliatory tariffs on the U.S. beginning on Sept. 8 in response to the Trump administration’s new 50 percent tariffs.
...
Carney said his government will release more details about these retaliatory policies in the “coming days” and that the tariffs would apply to goods like steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
U.S. Trade Representative Jamieson Greer released a statement from his X account on the Canadians walking away, calling it "a missed opportunity":
Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.
— United States Trade Representative (@USTradeRep) August 22, 2026
Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful…
"Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week," Greer wrote.
"Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days," he 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."
Greer added that, "[f]or decades, Canada has enjoyed the most favorable access to the U.S. market of any country. And from the beginning of President Trump’s trade program, Canada has continued to enjoy the best treatment in the world, even after – like China – retaliating against the United States. This week, the United States agreed to provide even better treatment to Canada, offering significant tariff reductions on steel, aluminum, autos, and lumber."
"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. The offer would have led to supply chain coordination on aerospace, complementary actions to address unfair trade practices, critical minerals cooperation, increased enforcement against imports produced with forced labor, and the announcement of formal U.S.-Mexico-Canada Agreement (USMCA) negotiations."
"This is a missed opportunity for Canada to partner with the United States, which is the fastest growing economy in the G7," he said.
RedState will provide updates on this developing story as more information becomes available.
Editor’s Note: Thanks to President Trump and his administration’s bold leadership, we are once again respected on the world stage, and our enemies are being put on notice.
Help us continue to report on the administration’s peace through strength foreign policy and its successes. Join RedState VIP and use promo code FIGHT to receive 60% off your membership.
Join the conversation as a VIP Member