Tuesday, August 25, 2026

Live updates: Canada to impose retaliatory tariffs on $20B in US goods as trade war escalates


Edited By
CURTIS YEE, LUENA RODRIGUEZ-FEO VILEIRA and MICHAEL WARREN
Updated 12:02 PM PDT
Aug. 25, 2026

The move came after the Trump administration imposed 50% tariffs over the weekend on Canadian goods following the collapse of trade negotiations. Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada.


Here’s what we’re following:
  • Canada struck back at the United States on Tuesday with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply.
  • Canada’s retaliation came after the Trump administration imposed 50% tariffs over the weekend on Canadian goods following the collapse of trade negotiations. Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during the failed talks showed that Americans wanted to “destroy our major industries.” President Donald Trump intensified the confrontation Monday, telling Canadian leaders to “fall in line.”
  • The Supreme Court on Monday cleared the way for Trump to move ahead with his executive order restricting mail-in voting, though it remains unclear how much his administration can implement before the fast-approaching midterm elections. Mail balloting has long been a favorite target for Trump, who has claimed that it breeds fraud despite strong evidence to the contrary and his own use of the voting method.
  • Treasury Secretary Scott Bessent announced a new round of sanctions aimed at Iran on Monday and warned every country that does business with the Islamic Republic to sever those financial ties or face retaliation from the U.S. The announcement follows Trump’s pledge last week to unleash an “economic D-Day” against Iran, in an effort to sever it from the rest of the global economy.


32 min ago
Trump pays tribute to Dolly Parton following death of the American icon
By AAMER MADHANI

Trump in a posting on social media called Parton “one of the greatest Country singers, and far beyond.”
“This is a true loss for millions of people,” Trump added. “There has never been anyone like her, and never will.” Trump also said that he was ordering the lowering of U.S. flags throughout the country for a week period beginning on Tuesday evening to honor Parton.


9:58 a.m. PDT
Agriculture secretary acknowledges farmers’ concerns over trade war but says US will come out on top
By COLLIN BINKLEY

Agriculture Secretary Brooke Rollins speaks with reporters at the White House, Tuesday, Aug. 25, 2026, in Washington. (AP Photo/Alex Brandon)

Talking to reporters outside the White House on Tuesday, Agriculture Secretary Brooke Rollins said she’s proud that Trump is “willing to stand up and make the hard decisions.”

“There’s no doubt that it causes concern amongst our farmers and ranchers,” Rollins said, adding that there are “a lot of unknowns” in the situation.

Rollins spoke shortly after Canada announced retaliatory tariffs on about $20 billion worth of American goods, responding to Trump’s new tariffs on about $20 billion in Canadian imports, including dairy products.

“I believe strongly that once they finish this next round of negotiations, whatever you want to call it, that America will certainly be the better for it, and that our farmers and ranchers will benefit the most,” Rollins said.


9:26 a.m. PDT
A look at some of the products Canada is targeting in its counter-tariffs
By WYATTE GRANTHAM-PHILIPS

Many of the goods are highly specific and mirror products on which Washington began imposing 50% tariffs over the weekend. But the list also includes additional targets, like goods made of steel and aluminum -- which already face a separate 50% U.S. sectoral tariff on most imports globally.

Some examples:
  • Live and frozen fish, crustaceans, oysters and mussels
  • Cheese and curd products
  • Natural honey, molasses and baking mixtures
  • Perfume, makeup and hair preparations
  • Toilet paper, facial tissues and envelopes
  • Various metal products made of steel or aluminum, including wire, rods, pipes and foil
  • Stoves, ranges, refrigerators and other household appliances
  • Smartphones and video game consoles

The new tariffs on these products will carry rates that vary between 15%, 25% or 50%.

Read more


9:13 a.m. PDT
ICE arrests jumped to nearly 50,000 in July, the highest monthly total of Trump’s second term
By REBECCA SANTANA


U.S. Immigration and Customs Enforcement agents make an arrest during an early morning operation in Park Ridge, Ill., Sept. 19, 2025. (AP Photo/Erin Hooley, File)

U.S. Immigration and Customs Enforcement arrested nearly 50,000 people during July, the highest single monthly arrest total during the second Trump administration, according to new figures.

The spike in immigration arrests shows that the administration has continued to advance its mass deportations agenda despite a shift in approach earlier this year from high-profile operations in large American cities that sparked a public outcry to arrests that have garnered less attention but have nonetheless been disruptive.

The July arrest tally of 49,571 marks a 15% jump from 43,021 arrests a month earlier and a 70% increase from 29,241 in February, in the aftermath of the Trump administration’s enforcement surge in Minnesota, according to government data that was provided by ICE to the University of California, Berkeley’s Deportation Data Project and analyzed by The Associated Press.

Read more


9:11 a.m. PDT breaking news updates
JUST IN: ICE arrests jumped to nearly 50,000 in July, figures show, the highest monthly total of Trump’s second term
By THE ASSOCIATED PRESS


9:09 a.m. PDT
Finance minister: ‘This is a Team Canada moment’
By ROB GILLIES


“This a moment to stand up,” François-Philippe Champagne also said.
Canada will not accept restrictions on its ability to choose its trading partners, he said.

“Maintaining our economic sovereignty is non-negotiable. That’s what we did, and that’s what we’ll do,” Champagne said.

Canada Minister of Finance and National Revenue Francois-Philippe Champagne speaks during a news conference on Canada’s response to U.S. tariffs, at a roofing company in Ottawa on Tuesday, Aug. 25, 2026. (Justin Tang/The Canadian Press via AP)


8:53 a.m. PDT
Canadian minister of jobs spells out economic impact of US tariffs
By JESSE BEDAYN


Canada Minister of Jobs and Families Patty Hajdu speaks as Minister of Finance and National Revenue Francois-Philippe Champagne looks on during a news conference on Canada’s response to U.S. tariffs, at a roofing company in Ottawa, on Tuesday, Aug. 25, 2026. (Justin Tang/The Canadian Press via AP)

The “unjust tariffs” and “economic warfare” have consequences, said Patty Hajdu at the press conference, noting that the impact of tariffs has been felt before, though not at this level.

The unknowns of what comes next — how big a dent tariffs will make in people’s pocketbooks — causes “worry and anxiety” that makes it challenging to plan for the future, she said.

“It has an effect of sort of freezing people in place: Should I make that investment? Should I buy that new house? Should I take that vacation? Should I add on to my businesses? Should I add a product line?” Hajdu said.


8:36 a.m. PDT
Canada aims to cushion blow to its economy and consumers
By ROB GILLIES

Canada also announced a support package for workers and businesses affected by the dispute worth $7.5 billion in Canadian dollars (US$5.4 billion). They said the counter tariffs will raise costs for some businesses and consumers, but expect the overall economic effects to be moderate.

They said the government has provided more than $30 billion Canadian dollars (US$21.7 billion) in tariff-related support since the beginning of 2025 — far more than it has collected in retaliatory duties — as it tries to cushion the blow.

The two countries have deeply integrated supply chains across autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border.

Industry Minister Mélanie Joly urged Canadians to buy Canadian products as they “launch this movement of resistance to what is happening to us.”


8:27 a.m. PDT
Canada is matching US tariffs ‘dollar for dollar, rate for rate’
By ROB GILLIES

Canadian officials led by Finance Minister François-Philippe Champagne announced the retaliatory tariffs, which they said would go into effect on Sept. 8.

Trump’s tariffs “will have real consequences for Canadian workers, businesses and communities across our nation. Canada must respond, and today we are,” Champagne said.

“We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” Champagne added in French.


8:10 a.m. PDT
Canada strikes back with retaliatory tariffs on about $20 billion in American goods
By ROB GILLIES


Minister of Finance and National Revenue Francois-Philippe Champagne speaks at a news conference on Canada’s response to U.S. tariffs, at a roofing company in Ottawa, on Tuesday, Aug. 25, 2026. (Justin Tang/The Canadian Press via AP)

Canada is targeting more than 700 U.S.-made products as the trade war escalates. The list extends well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%.

The tariffs on American steel, dairy products, appliances, farm equipment, pulp and paper and electronics take effect Sept. 8 at rates of 15%, 25% and 50%, with Canada matching the corresponding U.S. tariff rate on each product.

Canadian officials said the goal is not to raise revenue but to protect Canadian companies and reduce U.S. imports. Goods facing 50% tariffs also include some aluminum products, furniture, clothing and apparel. Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25% tariffs. Existing Canadian countertariffs on U.S. autos will remain in place.


8:07 a.m. PDTbreaking news updates
JUST IN: Canada to impose retaliatory tariffs on more than 700 US goods, including steel and appliances, as trade war escalates
By THE ASSOCIATED PRESS


8:04 a.m. PDT
Trump’s trade war with Canada could rattle economies in states with key Senate races
By BILL BARROW, PATRICK WHITTLE

Trump’s trade war threatens Republican efforts to address voters’ economic concerns as control of the U.S. Senate hinges on states along the border.

“Imposing new tariffs on Canada is a mistake,” Republican Sen. Susan Collins of Maine, one of Democrats’ top targets this year, said while campaigning Monday.

The issue also puts pressure on Republicans in the border states of Michigan, Ohio and Alaska, and in Iowa, whose main trading partner is Canada.

“Trump is escalating a trade war with Canada for his own vanity,” Michigan’s Democratic nominee Abdul El-Sayed said on social media, adding that his Republican opponent, former Rep. Mike Rogers, is a “rubber stamp” for such policies.

Read more


7:43 a.m. PDT
Ontario premier, after trading insults with Trump, wants to dial it down
By ROB GILLIES


FILE - Ontario Premier Doug Ford speaks to the media during a press conference at Queen’s Park in Toronto, Oct. 27, 2025. (Nathan Denette/The Canadian Press via AP, File)

Doug Ford, who traded personal insults with Trump a day earlier, struck a more conciliatory tone Tuesday, dismissing the president’s Lake Ontario threat as “a lot of rhetoric” and urging the two countries to resume negotiations.

Ford acknowledged in a CNN interview that the dispute had “got a little personal” and agreed it’s time to lower the temperature. He said the trade fight is hurting both countries and that Canada and the United States should “get back to the table” and negotiate a fair deal.


7:18 a.m. PDT
US consumer confidence falls to lowest level in 7 months as gas prices remain elevated
By MATT OTT

Americans’ confidence in the economy declined again this month as the ongoing conflict in Iran keeps pump prices over $4 a gallon.

The Conference Board said Tuesday that its consumer confidence index dipped to 89.4 in August from 90.2 in July. That’s the lowest in seven months and essentially in the same lukewarm range its been in since the beginning of the year. In late 2024 and early 2025 the readings were consistently above 100.

Respondents’ views of their present situation improved, but their outlook for the near-term future soured. Americans remain frustrated with the economy after five years of elevated inflation, potentially posing a risk to Trump and Republicans with fewer than 70 days to go before Election Day.


7:05 a.m. PDTbreaking news updates
JUST IN: Consumer confidence falls in August as ongoing conflict in Iran keeps gas prices steadily above $4 a gallon
By THE ASSOCIATED PRESS


6:55 a.m. PDT
Businesses and consumers are caught in the middle, facing uncertainty about price increases
By MIKE HOUSEHOLDER

Michael Howard II, owner of a furniture business in Warren, Michigan, outside Detroit, said the tariffs will hamper the “ability for us to put food on the table for our family, but also impacts the ability for us to give back to our community.”

Howard and his wife started their business a decade ago. They make and sell everything from dining room tables to bookcases.

“To say that we don’t need Canada is just disingenuous,” he said. “It’s dishonest. And it’s just absolutely not truthful. We need our neighbor, but also they need us.”

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