Archive · 22 Aug 2026
U.S., Canada Race to Seal Trade Deal Before Tariffs
Canada and the United States are trying to finish a trade agreement.
Their negotiators met in Washington for the third day in a row.
The talks continued just hours before new U.S. tariffs could begin.
President Donald Trump threatened a 50% tax on about $20 billion of Canadian goods.
He also said the two countries should be able to reach a deal.
A possible agreement could lower taxes on Canadian vehicles, steel, and aluminum.
Canada wants these tariffs reduced because they have hurt businesses and workers.
Canada is also considering returning U.S. alcohol to some liquor stores.
Some Canadian leaders support negotiating, while others think Canada should resist giving up more.
Canadian and U.S. negotiators held a third consecutive day of talks in Washington before a Saturday tariff deadline.
Dominic LeBlanc said the negotiations were unfinished and would continue until the last minute.
President Donald Trump threatened a 50% tariff on about $20 billion of Canadian imports if no agreement was reached.
Sources said a possible deal could reduce vehicle tariffs to 15% and steel and aluminum tariffs to 25%.
The talks faced domestic opposition in Canada, with 56% in a poll rejecting further concessions and some premiers urging resistance.
- Who
- Canadian Trade Minister Dominic LeBlanc, U.S. Trade Representative Jamieson Greer, U.S. President Donald Trump, Canadian Prime Minister Mark Carney, and their negotiating teams.
- What
- The United States and Canada were trying to finalize a trade agreement that could reduce existing tariffs and prevent new U.S. duties.
- When
- Friday, with the new 50% tariffs scheduled to begin at 12:01 a.m. EDT on Saturday if no deal was reached.
- Where
- Washington, D.C., including the office of the U.S. Trade Representative.
- Why
- The negotiations sought to reduce tariffs, avert new duties, and ease months of strained trade relations.
Pursue a Deal and Reduce Tariffs
Resist Further Concessions
Canada’s negotiating strategy
Pursue a Deal and Reduce Tariffs
Mark Carney and federal negotiators were seeking an agreement that could lower tariffs and prevent additional duties on Canadian goods.
Resist Further Concessions
Manitoba Premier Wab Kinew said Canada had the upper hand and should fight rather than give in to U.S. demands.
Whether concessions are acceptable
Pursue a Deal and Reduce Tariffs
Supporters of an agreement argue that reducing sector-specific tariffs could ease economic pressure and provide an off-ramp from the trade conflict.
Resist Further Concessions
A Leger poll showed that 56% of Canadians opposed further concessions, while Ontario wanted steel and aluminum tariffs removed entirely.
How to characterize the negotiations
Pursue a Deal and Reduce Tariffs
Trump said the talks were moving along and that his good relationship with Carney should allow the countries to reach a deal.
Resist Further Concessions
U.S. Vice President JD Vance mocked Carney’s presentation of the talks as a Canadian victory, saying Canada had backed down on many issues.
- Threatened tariff
- A 50% U.S. tariff on about $20 billion of Canadian imports.
- Tariff deadline
- 12:01 a.m. EDT, or 0401 GMT, on Saturday.
- Negotiation status
- Top trade negotiators met for a third consecutive day, but Dominic LeBlanc said more work was needed.
- Possible vehicle tariff
- Sources said tariffs on Canadian-built vehicles could fall from 25% to 15%.
- Possible steel and aluminum tariff
- Sources said tariffs on Canadian steel and aluminum could be cut to 25% from 50%.
- Canadian public opinion
- A Leger poll found that 56% of Canadians wanted Mark Carney to make no further concessions.
- Trade dependence
- Around 70% of Canada’s exports go to the United States.
