Economy

U.S.-Canada trade talks ended August 22, 2026, when Canada suspended negotiations after last-minute U.S. terms, triggering Section 338 tariffs at 50% on Canadian goods including dairy, alcoholic beverages, cement, and hockey equipment, effective 12:01 a.m. Eastern that day. Prime Minister Carney announced Canada will respond dollar-for-dollar on September 8, targeting steel, dairy, appliances, and electronics, though no formal Canadian tariff schedule or implementing order has been published. The covered trade value remains disputed, with U.S. and Canadian sources reporting figures ranging from approximately $20 billion to more than $28 billion.

The ONS reports that UK retail sales volumes dropped 0.5% month on month in July 2026, reversing gains of 1.3% in May and 0.7% in June, though volumes remained 1.6% above July 2025 levels. Non-food sales led the monthly decline, falling 1.3%, while food stores rose on the back of hot weather, World Cup demand, and alcohol promotions. Over the three months to July, volumes were 1.1% higher than the preceding three-month period and 3.0% above the same period a year earlier, providing broader context for the single-month dip.