Canada-US Trade Dispute, Additional Trade Update
Published Friday, August 28, 2026
Last weekend, a deadline for a potential new trade deal between the U.S. and Canada fell apart, reportedly over last-minute demands from the White House that Canadian officials deemed too steep. Since then, both countries have geared up for reciprocal tariffs that cut across several sectors and industries, including agriculture. This includes new tariffs on U.S. dairy products and agricultural equipment. Canada has been a top destination for California dairy goods for many years, and it remains unclear whether the two sides will delay the expected retaliatory tariffs. Negotiations for the U.S.-Mexico-Canada trade agreement are technically still ongoing, but the latest dispute is primarily over new tariffs unveiled by the Trump administration last month following a series of trade hearings held by the Office of the U.S. Trade Representative. Comments from both sides have been particularly acrimonious since the deadline passed, suggesting this dispute could lead to the proposed tariffs going into effect early next month.
Staff contact: Matthew Viohl, mviohl@cfbf.com.


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