Back to today’s briefing

Story perspectives

Canada-US talks avert Aug. 19 50% tariffs

8/17/2026

50 12 Full Breakdown

Summary

Canada Negotiates Tariffs

Canada and the United States are negotiating to avoid new 50 percent tariffs on $28 billion of Canadian goods starting Aug 19.
The United States demands Canada drop retaliatory tariffs, lift provincial bans on U.S. alcohol and accept Washington’s dairy licence rules.
The United States would cut auto, steel and aluminum tariffs to 10-15 percent within quotas.
Canada may reactivate its 2025 retaliatory tariffs if no deal is reached by Aug 19.

Summary

Trump Meets Xi

The White House report says China’s transshipment deprives the United States of $19 billion to $26 billion in tax revenue and costs $75 billion of goods, 450,000 jobs and up to $150 billion of GDP.
President Donald Trump will meet Xi Jinping in Washington soon after the report, with Xi slated for a September visit.
Trade scholar Amitendu Palit says the report is a Trump-era move to pressure allies for greater U.S. market access.

History

Historical Context

NAFTA took effect on January 1 1994, removing most tariffs among the United States, Canada and Mexico and spurring trade growth. After political backlash that helped elect Donald Trump, the pact was superseded by the USMCA in 2020, which kept near-zero duties but allowed limited security tariffs. When Trump imposed 25 % tariffs on February 1 2025, over 85 % of Canada-U.S. trade remained tariff-free.

1 of 3

Canada Negotiates Tariffs

Canada and the United States are negotiating to avoid new 50 percent tariffs on $28 billion of Canadian goods starting Aug 19.
The United States demands Canada drop retaliatory tariffs, lift provincial bans on U.S. alcohol and accept Washington’s dairy licence rules.
The United States would cut auto, steel and aluminum tariffs to 10-15 percent within quotas.
Canada may reactivate its 2025 retaliatory tariffs if no deal is reached by Aug 19.

1 / 3