U.S.-Canada trade tensions persist as Trump's tariffs drive up costs, threaten investment and complicate negotiations between the two countries. Canada on Tuesday (August 25) announced retaliatory tariffs on C$27.6 billion ($19.94 billion) worth of US goods, matching Washington's latest duties dollar-for-dollar as the trade dispute between. The United States imposed 50% tariffs on $20 billion worth of Canadian products early on Saturday (August 22, 2026), and Canada immediately said it would retaliate.