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U.S. Escalates Canada Trade War as Carney Quits Talks

8/27/2026

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Story summary
  • President Donald Trump escalated a trade war with Canada in August 2026.
  • Prime Minister Mark Carney quit tariff talks Friday, saying the U.S. demanded too much.
  • All provinces except Saskatchewan and Alberta banned U.S. alcohol, slashing exports by 81%.
  • Trump falsely claimed Canada’s unemployment was 10%; official data show 6.4% in July 2026.
  • The White House said Canada has a $50 billion goods trade deficit with the U.S., excluding oil.