Last-minute trade talks on tariffs grow more intense as 50% levies set to hit Wednesday
Prime Minister Carney says negotiations with Trump over Section 338 tariffs are 'delicate' as a midnight deadline approaches and business owners brace for impact.
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Prime Minister Mark Carney said last-minute negotiations with the U.S. to avoid a fresh batch of tariffs are "delicate" and "intense." Speaking to reporters Monday in St. John's while announcing a landmark hydroelectric deal with Quebec and Newfoundland and Labrador, Carney said he plans to speak directly with U.S. President Donald Trump within the next 48 hours to broker a deal. "We are involved in very delicate and intense negotiations, this is not the time to negotiate in public. We are coming into those negotiations from a position of strength," he said.
Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette have held a series of talks with U.S. Trade Representative Jamieson Greer over the past three weeks. On Monday afternoon, LeBlanc and Charette met with Greer and U.S. Commerce Secretary Howard Lutnick for about an hour and 45 minutes — their longest meeting so far. A source with direct knowledge of the negotiations said prior to the meeting it was expected to be the final one at the ministerial level, though that remained unclear after talks concluded.
LeBlanc told reporters outside Greer's Washington office: "We're going to continue working; our job is not yet done."
The Americans are seeking concessions including the removal of U.S. liquor from retaliatory shelving, removal of Canadian retaliatory tariffs on U.S. autos, and changes to how Canada's supply-managed dairy sector allocates quotas. Canada is demanding that Trump scrap the threatened tariffs entirely and provide substantial relief for hard-hit sectors that have endured tariffs for over a year.
A White House official said that the president has pledged to "put a stop to foreign cheating and put American workers, farmers and businesses first." "The administration continues to work with our trading partners towards fair trade arrangements," the official said.
Carney said he is ready for any scenario. "I have plans for any situation that may arise," he said.
Will a last-minute deal be reached before the 12:01 a.m. ET Wednesday deadline?
What specific dollar value of Canadian goods is subject to the threatened 50% Section 338 tariffs?
We'll update this story as answers emerge.
By the numbers
When are the Section 338 tariffs set to take effect?
The tariffs are scheduled to hit on Wednesday, August 19, 2026, at midnight.
How long did Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette meet with their U.S. counterparts on Monday?
On Monday, August 17, 2026, LeBlanc and Charette met with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick for approximately one hour and 45 minutes.