US-Canada Trade War Escalates as Internal Disputes Over Tariffs and Language Rights Collapse Negotiations
US-Canada trade talks collapsed in August 2026, triggering a new round of tariffs and retaliatory measures. The breakdown stems from internal US disagreements over tariff reductions on steel and autos, as well as disputes over Canadian regulations protecting French language and content. While US officials blame Canada for last-minute demands, Canadian negotiators argue the US moved the goalposts, leading to a deepening trade war that risks spreading to other allies.