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Canada Pushes for Broad Trade Deal as U.S. 50% Tariffs Loom on Aug. 19

Failure to strike a comprehensive agreement would leave steep levies in place and push Ottawa toward tougher measures while talks continue in Washington.

Overview

  • The White House announced 50% tariffs on roughly US$20 billion of Canadian exports that are scheduled to take effect on Aug. 19.
  • Prime Minister Mark Carney is pressing for a single, wide-ranging pact that would lift U.S. tariffs on autos, steel, aluminum and forest products and has rejected narrow, sector-by-sector deals.
  • Canada’s chief negotiators Dominic LeBlanc and Janice Charette are meeting U.S. trade officials, industry leaders and senators in Washington as disagreements persist over sequencing and U.S. demands such as greater dairy access and the rollback of provincial countermeasures.
  • Public exchanges have hardened the tone of talks, with Carney mocking a teleprompter glitch and President Trump publicly calling Canadian leadership “nasty,” increasing political pressure on both governments ahead of the U.S. midterms.
  • Ottawa says it is prepared to escalate if no deal is reached but has ruled out restricting oil and gas exports, and analysts warn unresolved tariffs could raise prices, threaten jobs and disrupt cross-border supply chains.