Trade negotiations between the United States and Canada definitively collapsed on Friday, Aug. 22, 2025, triggering 50% U.S. tariffs on roughly $20 billion of Canadian goods. Canada is set to impose retaliatory tariffs on Sept. 8 on steel, dairy, lobster and other goods. The central dispute centered on tariff rates for heavy-duty trucks, with Canadian negotiators pushing to lower them late in the process. Governors and senators from border states Maine, Vermont and Michigan, across party lines, have called for a return to negotiations, warning the tariffs threaten their local economies and hundreds of thousands of jobs.
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