U.S. And Canada Race To Avert 50% Tariffs On $20 Billion In Trade
The United States and Canada held last-minute talks Tuesday to try to head off President Trump's plan to impose 50% tariffs on $20 billion of Canadian goods starting 12:01 a.m. Wednesday, Aug. 19, 2026.[1]
If no deal is reached, the tariffs would take effect as scheduled on roughly $20 billion in Canadian shipments, U.S. officials have said.[1] Canadian Prime Minister Mark Carney said Monday that negotiations are "very intense and delicate" and he refused to discuss them in public.[1]
President Trump has linked the tariff threat to U.S. demands for more Canadian purchases of American military hardware, Canadian participation in the "Golden Dome" missile defense system and greater access to Canadian critical minerals. Canada is seeking relief from existing U.S. tariffs on steel, aluminum and softwood lumber that Washington says are unfairly subsidized.
Nearly 72% of Canadian exports went to the United States last year, underscoring how quickly a failure to reach an agreement could ripple through integrated North American supply chains.
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📌 Key Facts
- President Trump plans to impose 50% tariffs starting 12:01 a.m. Wednesday, August 19, 2026, on $20 billion in Canadian goods if no agreement is reached.
- Canadian Prime Minister Mark Carney said on Monday, August 17, 2026, that negotiations with the U.S. are 'very intense and delicate' and refused to discuss them in public.
- U.S. objectives reportedly include more Canadian purchases of U.S. military hardware, Canadian participation in the 'Golden Dome' missile defense system, and greater access to Canadian critical minerals.
- Canada is seeking relief from existing U.S. tariffs on steel, aluminum and softwood lumber, which Washington says are unfairly subsidized.
- Canada is the United States' second-largest trading partner, and nearly 72% of Canadian exports went to the U.S. last year.
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