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What to know about Canada’s escalating trade war with the US as Carney retaliates with tariffs

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Canadian Prime Minister Mark Carney speaks with members of the media as he arrives at the Office of the Prime Minister and Privy Council in Ottawa, on Tuesday, Sept. 1, 2026. (Justin Tang/The Canadian Press via AP)

TORONTO (AP) — Canada struck back at U.S. President Donald Trump on Tuesday with tariffs on about $20 billion worth of U.S. goods, in response to the latest round of tariffs on Canada.

Key facts

Summary

The outcome could resonate far beyond Canada, showing other governments whether a smaller U.S. ally can withstand Trump’s economic pressure.

Canadian Prime Minister Mark Carney says U.S. demands could hollow out key Canadian industries and limit the country’s independence, while Trump’s threats to Canadian sovereignty have rallied the public behind him.

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