Canadian Prime Minister Mark Carney speaks about the trade dispute with the United States at the Davie Shipyard in Levis, Quebec, Canada on August 24, 2026. The administration of US President Donald Trump warned on August 23 that Canada would be "foolish" to think it could win a trade war with the United States, predicting a "devastating" impact on its northern neighbor. Negotiations between Washington and Ottawa broke down late August 22, putting into force new 50-percent US tariffs impacting about $20 billion worth of Canadian goods, or 5.5 percent of Canadian exports to the US. Canada in retaliation said it would match US tariffs, with new levies notably targeting the US steel and dairy industries to take effect on September 8. (Photo by ANDREJ IVANOV / AFP via Getty Images)