Archive · 21 Aug 2026
Canada, US Race to Finalize Tariff Deal Before Deadline
Canada and the United States are trying to settle a disagreement about tariffs, which are extra charges on imported goods.
Their main trade negotiators have been meeting for several days.
They hope to finish a deal before the United States could add a new 50% tariff to some Canadian products on Saturday.
The proposed deal could lower taxes on Canadian cars and trucks.
It could also reduce tariffs on Canadian steel and aluminum.
Canada has placed some counter-tariffs on U.S. goods in response.
Canadian provinces may be asked to remove restrictions on U.S. alcohol sales.
Some Canadian leaders want a better deal and do not want Canada to give up too much.
Dominic LeBlanc and Jamieson Greer are holding consecutive negotiations aimed at finalizing a trade agreement.
The proposed deal could lower U.S. tariffs on Canadian-built vehicles to 15% from 25%.
Tariffs on Canadian steel and aluminum could be halved to 25%, though Ontario wants them removed entirely.
The United States postponed a threatened 50% tariff on about $20 billion of Canadian goods until Saturday.
Canada’s provinces face pressure to lift restrictions on U.S. alcohol, while Canadian leaders disagree over further concessions.
- Who
- Canadian Trade Minister Dominic LeBlanc, Chief Trade Negotiator Janice Charette, U.S. Trade Representative Jamieson Greer, and other Canadian and U.S. officials.
- What
- The countries are negotiating a trade agreement that could reduce tariffs and countermeasures.
- When
- Negotiations began at least on Wednesday and continued on Thursday; a further meeting was expected on Thursday or Friday, according to the reports. The threatened tariff deadline is 12:01 a.m. EDT Saturday.
- Where
- Washington, D.C.; Marco Rubio and Anita Anand were scheduled to meet at the White House.
- Why
- The countries are trying to reduce months of tariffs and counter-tariffs and prevent an additional U.S. tariff from taking effect.
Canadian calls for stronger terms
U.S. pressure for concessions
Tariff relief
Canadian calls for stronger terms
Canada is seeking relief from U.S. tariffs on automobiles, steel, and aluminum. Ontario wants the steel and aluminum tariffs removed entirely.
U.S. pressure for concessions
The United States may lower tariffs, but the proposed agreement would not necessarily restore trade conditions to their pre-Trump levels.
Negotiating strategy
Canadian calls for stronger terms
Manitoba Premier Wab Kinew said Canada should keep pushing for better terms, while Saskatchewan Premier Scott Moe said there was no return to the pre-Trump status quo.
U.S. pressure for concessions
President Donald Trump has linked potential tariff concessions to a deal that would also remove Canadian tariffs on U.S. goods.
Canadian concessions
Canadian calls for stronger terms
Some Canadian officials and provincial leaders oppose making further concessions; a Leger poll found that 56% of Canadians wanted none.
U.S. pressure for concessions
Canada may be expected to remove countermeasures, including provincial restrictions on U.S. alcohol, which Washington considers an irritant.
- Proposed vehicle tariff
- The tariff on Canadian-built vehicles could fall from 25% to 15%.
- Proposed metals tariff
- Tariffs on Canadian steel and aluminum could be reduced to 25%, described as half their current level.
- Threatened tariff
- The United States postponed a proposed 50% tariff on about $20 billion of Canadian goods until 12:01 a.m. EDT Saturday.
- Key negotiators
- Dominic LeBlanc, Janice Charette, and Jamieson Greer.
- Negotiation progress
- LeBlanc said after more than three hours of talks on Thursday that the countries were “very close” to a deal, while more work remained.
- Canadian trade exposure
- Around 70% of Canada’s exports go to the United States, according to the report.
- Public opinion
- A Leger poll cited in the report found that 56% of Canadians wanted Prime Minister Mark Carney to make no further concessions.
