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Canada Rushes to Avert 50% U.S. Tariffs Before Aug. 19 Deadline

Ottawa is racing to secure an interim deal that could roll back duties and prevent major job losses and supply‑chain disruption.

Overview

  • Dominic LeBlanc met U.S. Trade Representative Jamieson Greer for a third time in three weeks on Tuesday as Canadian negotiators seek to present a path to the White House ahead of the Aug. 19 tariff date.
  • The White House has proposed up to 50 percent tariffs on about US$20 billion of Canadian goods, a move the administration says relies on rarely used authorities such as Section 338 of the Smoot‑Hawley Act and earlier Section 232 actions.
  • Talks are focused on an interim package in which Canada would accept sectoral concessions — export quotas on steel and aluminum, changes to dairy and procurement rules, and the return of U.S. alcohol to store shelves — in exchange for relief from some existing U.S. tariffs.
  • Industry groups warn that failure to reach a deal or a wider breakdown of CUSMA could cost roughly 100,000 Canadian jobs and far more in the United States, and markets have already moved on the heightened trade risk.
  • Legal and political uncertainty is rising because the tariff authorities are untested in court, the U.S. will not renew CUSMA in its current form, and public polling shows broad Canadian support for a firm negotiating stance.