Full Breakdown
Canada-U.S. Trade Talks Edge Toward Midnight Deadline
8/19/2026, 4:34:11 AM
Canada-U.S. Trade Talks Near Midnight Deadline
Prime Minister Mark Carney and President Donald Trump have been on the phone in a series of calls aimed at averting new U.S. tariffs on roughly $30 billion of Canadian exports that would take effect just after midnight. A Carney spokesperson described the discussions as “ongoing negotiations,” while Trade Minister Dominic LeBlanc has been meeting with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to narrow the gap on key issues such as auto duties and dairy quota allocations. If no agreement is reached, a 50 percent tariff could be imposed on a range of Canadian products, including liquor, hockey equipment, wood, and paper.
Background & Stakes
The dispute stems from the Trump administration’s threat to raise tariffs under Section 338 in retaliation for Canadian measures on U.S. goods. Canada is also seeking relief from existing Section 232 tariffs on steel, aluminum, autos and lumber. The U.S. has offered to lower the headline auto tariff from 25 percent to 15 percent, with the effective duty rate potentially falling to 7.5 percent—still above Canada’s target. The products subject to the steep tariffs represent about 5 percent of Canada’s total exports to the United States in 2024.
Official Statements & Responses
Carney called the negotiations “delicate” and “intense,” indicating he will speak with Trump again within 48 hours. A senior Canadian official said the government is preparing a response plan should the tariffs be imposed, including the possibility of retaliatory measures. The U.S.
Verbatim Quotes
- “Auto was always going to be difficult in these discussions,” — Lana Payne, the national president of Unifor, the union that represents many autoworkers
- “We need to find a way back with the U.S. because we are very connected and we need our companies to sell there,” — Charlotte Laramée, the CEO of AluQuébec, an aluminum trade group
- “We've made it very clear to to this government that we don't want anymore concessions made on dairy,” — David Wiens, the president of Dairy Farmers of Canada
- “I think it's really important that our government and that we as regular Canadians not feed into the kind of chaos mentality that I think sometimes the president tries to create through his art of the deal,” — Jason Kenney
