Donald Trump's tax on imports will hit about 5% of the goods Canada ships to the US every year, which range from hockey sticks to tongue depressors.
Canadian prime minister Mark Carney said his country would retaliate against the US, with measures being brought in on 8 September.
It comes after the two countries failed to reach a trade deal late on Friday as negotiations broke down, worsening an already delicate relationship between the two long-term partners.
"Canada will match Washington's new tariffs dollar for dollar to protect Canadian workers, farmers, families, and businesses," Mr Carney told a news conference in Ottawa.
He said the retaliatory tariffs will hit sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
Mr Carney disclosed Canada had been willing to drop remaining retaliatory tariffs on steel, aluminum and automobiles if the US substantially lowered its own.
But he claimed Washington's final demands went too far, saying: "They asked too much and offered too little."
He said that "last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal".
According to the Canadian PM, the last-minute terms would have cut tariff relief for Canadian-made vehicles, restricted Canada's ability to strike trade deals with other countries and weakened protections for language, culture and sovereignty. He said such demands were "unacceptable".
Mr Carney stated: "We have recognised from the beginning that America has changed, and that we will not return to our old relationship."
He said he had suspended negotiations, and directed Canada's negotiating team to return to Ottawa.
Canada had sought concessions on tariffs on steel, aluminium, automobiles and timber that the US was unwilling to provide, a senior Trump administration official told reporters.
"Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week," trade representative Jamieson Greer said.
"Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days."
Mr Greer said the US's offer was "forward-looking", and included a "historic economic and national security partnership".
He had previously said Canada's goal throughout the negotiations had been to secure the best possible agreement "never a deal at any price or on any deadline".
No further talks have been planned.
Mr Carney said his government would announce additional support for Canadian workers and businesses in the coming days.
The breakdown in negotiations marked a strong contrast to two days earlier, when officials from the two countries indicated they were headed toward a compromise.
The countries sold each other $880bn (£645m) worth of goods and services last year, though the political impact is likely to be just as significant as the economic fallout.
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Historically, the relationship between the neighbouring countries has been co-operative, with Canada sending troops to Afghanistan after 9/11 and nearly 330,000 people and $2bn (£1.47bn) worth of goods crossing the border each day.
The escalation in trade tensions also calls into question the future of a trade pact between the US, Canada and Mexico which was agreed during Mr Trump's first term.
The Fire Brigades Union told Sky News that recent investment in firefighting resources was "a drop in the ocean" compared with what is needed to deal with growing threats from wildfires.
Tinderbox dry land from extreme heat and droughts has created conditions susceptible to wildfires and driven the worst fire season on record in England and Wales this year.
Our analysis of data from the European Forest Fire Information System (EFFIS) shows nearly one in five large wildfires (19%) in England and Wales came within 500m of built-up areas in 2026. This is based on analysis of fires of 30 or more hectares - the size of around 42 football pitches.
These fires also raged for longer in 2026 than previous years, with 17% observable by satellite for more than three days, up from just 1% in 2025. And 15% of large fires burned an area of at least 500 hectares, a rate three times higher than last year.
Recent analysis by Ordnance Survey found that 1.8 million homes in Britain sit on urban-rural boundaries, for example facing open countryside, leaving them exposed to increasing risk from wildfires which are no longer confined to remote areas.
"We are increasingly seeing wildfires affecting areas where homes, businesses and infrastructure meet the countryside," a spokesperson for the National Fire Chiefs Council told Sky News.
"That creates a much greater risk to communities and makes incidents more complex and resource-intensive for fire and rescue services to tackle."
How a relatively small wildfire destroyed homes in Stourbridge
Fire services have been stretched to breaking point dealing with fires that have reached homes.
On 13 August, the UK had the hottest day to date in 2026, reaching 38.1C. The same day just before 1.30pm, a fire broke out in Stourbridge, Dudley. It was nowhere near one of the largest fires of the year, but had a devastating impact due to the proximity of residential areas.
Around 100 firefighters were deployed as the flames crossed roads and reached nearby houses, forcing residents to leave their homes.
West Midlands Fire chief Simon Tuhill said: "The fire spread rapidly and has affected 38 domestic properties. Of these, sadly, 19 have been fully destroyed and a further 18 have sustained damage."
Sky News Data and Forensics team verified the destroyed houses using satellite imagery and available video footage.
Satellite imagery from Stourbridge shows the devastation of the fire. The first image was taken at 12.48pm, just over 40 minutes before the fire broke out.
The second image taken one day later, shows burnt fields that back on to residential areas. The affected area appears to cover around 247 acres.
Many residents were left without homes.
Sandy Shiralkar, whose house was affected by the fire, told Sky News: "I was putting a very brave face on, but inside I was completely broken."
She spoke about the impact the fire had on her house, saying: "There is nothing inside, no floorboards, everything has collapsed."
Fire service forced to 'pick and choose' where to go
Fire and rescue services across the UK have undergone significant cuts over the last 15 years, with the number of firefighters decreasing by 20% from 2010 to 2025, from 59,000 to 47,000.
The largest fall was in West Yorkshire, where firefighter numbers have fallen by over a third, but every single fire and rescue service has experienced a decrease.
These cuts, which have happened alongside a decrease in the number of fire stations and fire engines, have left fire services poorly equipped to deal with escalating wildfire demand, general secretary of the Fire Brigades Union Steve Wright told Sky News.
"It makes firefighters less safe, it makes the public less safe," Mr Wright, who has been an operational firefighter for 25 years, said.
"The scale of wildfires that we've seen has meant that staff working in our control rooms have had to pick and choose what incidents they send firefighters to because there's just not been enough of us."
The government has increased funding for English fire authorities in 2026, guaranteeing standalone services at least a 3.8% increase in core funding. In June, it also announced specialist wildfire teams based in five areas and a £97m programme to upgrade National Resilience vehicles and equipment used for major emergencies including wildfires.
This is, however, a "drop in the ocean", Mr Wright said, with dedicated wildfire teams covering only a fraction of the UK's 49 fire authority areas.
Specialist equipment is needed and helpful in specific cases, but not the only important factor for preparedness.
"Air capability would have been useless in Stourbridge where 19 homes burned down. That's when you need fire engines and firefighters to be able to deal with those types of incidents," Mr Wright said.
Wales most impacted in the UK
The National Fire Chiefs Council told Sky News that while the scale and severity of wildfires have been increasing for several years, "we have never seen anything quite like this summer".
"Fire and rescue services have responded to more than 1,100 wildfires across England and Wales," its spokesperson said.
"That goes considerably beyond last year's record total, and we still have weeks of the season still to go."
Sky News analysis of satellite data has found that more land has burned in England and Wales than in any previous year by the same point.
Wales has been the most impacted nation in the UK this year, with nearly 15,500 hectares burned in 2026 to date - larger than the total area of Cardiff. This was over half (57%) of the total of all land burned in the UK, and 13% more than by the same point last year, in what was at that time a record-breaking fire season.
A recent outbreak of fires in South Wales has stretched resources.
On 19 July, a very large wildfire broke out near Blaenavon in South Wales. It covered over 4,000 hectares of land and has been burning for over a month.
Satellite imagery from Blaenavon shows the scene before and after the fire. Break lines are created in fields to stop the fire from spreading, highlighted by the green box.
A major incident was declared after another wildfire broke out near Llangynidr mountain, Ebbw Vale, on 7 August. This fire covered 400 hectares of land. Both fires combined covered the equivalent to around 6,000 football pitches.
Many of these fires burned across moorland, but the impact was not confined to the countryside. On 12 August, a wildfire broke out near Hazelwood Road near Newbridge, destroying five houses.
Sky's Data and Forensics team has mapped wildfire incidents using NASA satellite data, official reports and video footage. In a 30-day period 19 wildfires broke out in South Wales. Many of these lasted several days, some re-igniting.
The fire at Llangynidr moor can be seen breaking out on satellite data from NASA. After five days, the fire had grown nearly six times larger.
Satellite imagery captured large plumes of smoke on 12 August, five days after the fire started.
During the worst period in mid August, military deployment was requested - MACA (Military Aid to the Civil Authorities). 100 soldiers were deployed, including the Queen's Own Gurkha Logistic Regiment and Royal Engineers, with the deployment subsequently increasing to around 200.
Sky News spoke to Chris Hadfield, area manager of South Wales Fire and Rescue Service.
He said: "Whilst I've been working for the fire rescue service, I've never experienced anything quite on this scale before.
"These [wildfires] are resource heavy, but they're also, you know, really difficult conditions. You look at the heat alone and the terrain we're working in, you know, it's been really difficult for our firefighters, and our partners have been working with us."
On 16 August, South Wales Fire and Rescue Service reported they were attending 14 concurrent wildfire incidents that day.
Many of these fires are suspected to be arson.
Sky News spoke to Craig Hope, National Resilience wildfire capability advisor.
"We don't really understand why, but we do have an arson problem," he said.
Of the 19 individual fires Sky News identified, at least five were publicly reported to be deliberate. Although the true number is suggested to be a lot higher.
Risk will keep getting worse
Dr Mark Hardiman, associate head of the School of Environment and Life Sciences at Portsmouth University, told Sky News the wildfire risk will continue to worsen.
"We've just been through a period in the south and other parts of the UK of very, very high danger of fire," he said.
"Over the next 40, 50 years, that risk is probably going to double."
As the last two summers have shown, wildfire seasons have already become more extreme. Since 2025, more land has burned (81,355 hectares) than in the entire previous five years combined (57,244 hectares).
Fire resilience expert Mr Hope said "if we don't get this right now, we will lose lots more properties and we will start to lose lives".
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
The men, aged 22 and 23, were taken into police custody on Saturday 22 August after the body of Liam Potts was found in the River Tyne on 18 August.
The soldier had been reported missing three days before that on 15 August.
Mr Potts, who served with the Coldstream Guards, was last seen heading towards Wylam in Northumberland at around 12.20am on Saturday 15 August.
Before his disappearance, Northumbria Police had received a report of a disturbance and subsequent collision involving a vehicle and a group of pedestrians on the bridge.
Police arrested two men and then bailed them in connection with the report on Monday.
They have since been re-arrested on suspicion of manslaughter as detectives investigate whether the two incidents directly led to Mr Potts entering the water.
Police made clear Mr Potts was not in the vehicle involved in the collision, nor was he struck by it.
The force said when officers found Mr Potts's body, they did not believe there to be any third-party involvement, but further inquiries prompted the manslaughter arrests.
A man and a woman, both in their 20s, suffered serious injuries in the collision.
The woman has been discharged while the man remains in hospital for further treatment.
'Heart of soul of any room'
Northumbria Police, in conjunction with HM Coastguard, North of Tyne Mountain and Northumberland National Park Mountain Rescue teams, carried out searches for Mr Potts.
While no formal identification of the body has taken place, Mr Potts's next-of-kin have been informed.
His family said he was the "heart of soul of any room".
They said: "To our Liam. You may no longer be here beside us, but your presence will never be forgotten. Your family, friends and colleagues have all said the same thing, 'once you met Pottsy, you could never forget him.'
"You really were the heart and soul of any room."
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Senior investigating officer Detective Inspector Rachael Rutherford, of Northumbria Police, said: "The facts remain the same that Liam was on the bridge at the time of the collision, but he was not an occupant of the vehicle and was not struck by the vehicle.
"Inquiries have revealed that Liam, for reasons yet to be established, entered the water within minutes of the collision.
"We have therefore made the further re-arrests as we are looking to establish whether there is any link between the collision and Liam entering the water."
Mr Infantino was told in a letter on Friday by the region's football leadership that his presence at the event in the Dominican Republic this weekend would "undermine" the children's matches.
The embattled football leader yesterday flew into the Caribbean island, where he made light of questions by Sky News on the crisis engulfing FIFA - and stayed silent on his future.
While Mr Infantino was greeted by local politicians, the head of the football confederation for the North American and Caribbean region told him he is not welcome at the Caribbean Football Union under-14s tournament.
It is understood he was invited before officials knew of secret plans to try to sell shares in a new World Cup venture to private investors, which provoked anger within the CONCACAF region once they were leaked last month.
We have learned that CONCACAF president Victor Montagliani wrote to Mr Infantino on Friday to say the "governance crisis" caused by the scheme "will unfortunately significantly take away from the technical nature of the CFU youth competition" given the media focus.
And Mr Montagliani - who is also a FIFA vice president - told Mr Infantino: "I respectfully ask you in the name of football to reconsider your attendance as it will unfortunately undermine the technical nature of this important youth development activity."
FIFA was asked for comment.
Video posted on social media did show local officials saying they were honoured to welcome him to Punta Cana in the Dominican Republic.
FIFA provides millions of dollars in development funding for the country, with the cash largely raised by the World Cup.
CONCACAF two weeks ago signed a joint letter with the European and Asian football confederations pushing for Mr Infantino to leave power.
They wrote there had been a "fundamental breach of trust" caused by Mr Infantino blind-siding football officials with the plans to sell 20% of the World Cup to private equity.
They added that "when trust is broken through deception, when an individual places himself above the collective that entrusted him with authority, that duty has been abandoned".
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Mr Infantino can point to the support of one CONCACAF country, Mexico, but the other 2026 World Cup co-hosts, Canada and the United States, have criticised his leadership.
But Mr Infantino did pose for a photo yesterday with the Dominican Republic Football Association president, Jose Deschamps.
He also still has the backing of the South American confederation, CONMEBOL, which is pushing for the World Cup to be expanded to 64 teams to stage more games in the region in 2030.
But when challenged by Sky News on Friday, Mr Infantino did not address the concerns raised by fan groups this week as they launched a global push for his resignation.
There is a FIFA presidential election next year, and FAs, including England, Wales and Scotland, have withdrawn previous letters of endorsement for Mr Infantino.
The deadline for candidates is November.
Three other people were wounded in Friday's deadly assault, including two boys aged 12 and 17 who were seriously injured.
The third person, who was also under 18, was slightly injured and has been discharged from hospital, Swedish news agency TT reported.
An 18-year-old man has been arrested over the incident at Brinell high school in Fagersta.
The attack, which happened just after lunch as classes were taking place, is being investigated by police as murder and attempted murder.
The parents of a 17-year-old girl told local newspaper Fagersta-Posten their daughter was killed in the attack northwest of the capital Stockholm.
And the headteacher told local media P4 Vastmanland that the attacker was a student at the school.
Police said they fired shots but the assailant was not hit.
"Service weapons were used but the perpetrator has not been injured in connection with the arrest, and has not been in need of medical attention," a police spokesperson told the Aftonbladet daily.
While it is unclear what the motive was for the attack, investigators have carried out two house searches in connection with the suspect.
Reuters, citing a police source, reported officers were investigating if he was involved in online communities promoting school violence.
"The investigators are looking into various online communities which might have egged on the suspect to carry out the attack," the source was quoted as saying.
On Saturday morning, about 70 people gathered at a memorial site, carrying flowers and lighting candles, TT reported.
Sweden's Prime Minister Ulf Kristersson, who visited the scene along with opposition leader Magdalena Andersson, has expressed solidarity with the affected families and those impacted by previous school attacks in the country.
"What must never happen has happened again," Mr Kristersson said.
"Our thoughts go first and foremost to the families who have been incredibly hard hit by this," he added.
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Political parties suspended campaign events on Saturday, ahead of the country's parliamentary election due in September.
The attack comes a year after a school shooting in Orebro, also in central Sweden, when a gunman killed 10 people before turning the weapon on himself, in the worst mass shooting in Swedish history.




