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Alcohol, autos among key irritants in Canada-U.S. trade talks

Canadian and U.S. officials are meeting daily as Trump’s tariff threat could hit $20 billion in goods and deepen trade tensions.

  • On Tuesday, President Donald Trump and Canadian Prime Minister Mark Carney held last-minute talks to avert 50% tariffs on $20 billion of Canadian goods scheduled to take effect at 12:01 a.m. Wednesday.
  • Trump invoked Section 338 of the 1930 Tariff Act to justify the levies, aiming to force manufacturing back to the United States amid decades of trade tensions.
  • Nearly 72% of Canadian goods exports went to the United States last year, while the 5,525-mile border facilitates $2 billion in daily trade between the two nations.
  • Carney described the current talks as "very intense and delicate" while speaking to reporters Monday, as both sides seek a truce to avoid escalating the trade dispute.
  • Ryan Majerus, a partner at King & Spalding, said "there's a pretty strong push on both sides to find an off ramp here," suggesting neither side truly wants the tariffs implemented.
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In the absence of a last-minute agreement between Ottawa and Washington, Canada is about to undergo a new customs duty on its exports unless last-minute agreement between Ottawa

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The Latest: Last-minute talks seek to stop US tariffs on Canadian goods

Relations between the U.S. and Canada could deteriorate further if Trump goes ahead with his plan to impose 50% tariffs on $20 billion worth of Canadian products. The two countries are talking as the midnight deadline approaches. The fate of…

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The Globe & Mail broke the news in Toronto, Canada on Sunday, August 16, 2026.
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