Canada and U.S. negotiators in final push before midnight tariff deadline
Trade talks intensify as 50% U.S. tariffs on $30 billion in Canadian goods set to take effect Wednesday. Alberta will block nearly $300 million in U.S. liquor exports in response.
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Canadian and American negotiators are expected to meet again today to try to hammer out a deal and avoid new U.S. tariffs on some $30 billion in Canadian goods due to take effect just after midnight Wednesday.
Trade Minister Dominic LeBlanc is expected to meet with U.S. Trade Representative Jamieson Greer, with Prime Minister Mark Carney possibly speaking to U.S. President Donald Trump. As of noon ET, no time had been set for either discussion, and talks could still collapse.
Trump has threatened 50 per cent tariffs on a long list of Canadian products in retaliation for Ottawa's tariffs on U.S. goods—tariffs Canada imposed only after Trump launched his trade war on Canada last year. If no deal is reached, those tariffs will take effect Wednesday, hitting liquor producers, hockey equipment manufacturers, wood and paper producers and dozens of other entities.
Canada is pushing for the U.S. to scrap the Section 338 tariffs entirely and lower existing Section 232 tariffs on industrial products like steel, aluminum, autos and lumber. The Trump administration wants U.S. liquor back on the shelves of provincially run stores, an effective boycott that has devastated exporters. Alberta will block nearly $300 million worth of U.S. liquor exports as part of its response to American tariffs.
The U.S. is also demanding Canada remove retaliatory tariffs on American autos and adjust how the supply-managed dairy sector allocates quotas. While Greer has signalled the U.S. won't drop tariffs entirely, there are signs the rate may be flexible if Canada addresses U.S. demands. However, industry sources report a significant gap between what Canada wants and what the Americans are offering—particularly on autos and steel. On autos, the latest U.S. offer would lower tariffs on Canadian-made vehicles to 15 per cent headline rate, with an effective rate (the actual duty collected) as low as 7.5 per cent—still higher than Canada wants.
By the numbers
What tariff rate does the U.S. plan to impose on Canadian goods if no deal is reached?
The U.S. has threatened 50 per cent tariffs on approximately $30 billion in Canadian goods, set to take effect just after midnight on Wednesday, August 19, 2026.
How much U.S. liquor will Alberta block in response?
Alberta will block nearly $300 million worth of U.S. liquor exports as part of its response to American tariffs.
What tariff rate has the U.S. offered on Canadian-made vehicles?
The latest U.S. offer would lower tariffs on Canadian-made vehicles to a 15 per cent headline rate, with an effective rate as low as 7.5 per cent.
