Overview
- U.S. and Canadian negotiators intensified talks Tuesday as they race to reach a truce before the 12:01 a.m. Wednesday deadline that would trigger 50% duties on roughly $20 billion of Canadian goods.
- President Trump invoked Section 338 of the 1930 Tariff Act to threaten the duties, a legal tool that allows up to 50% tariffs without an investigation and that has never been used before.
- Washington is pressing for concessions on autos, dairy tariff‑rate quotas, provincial bans on U.S. alcohol and greater access to critical minerals while Canada seeks relief from existing U.S. tariffs on steel, aluminum and lumber.
- Coverage of the talks differs: Politico reports an interim package has reached the president’s desk, while other outlets and officials say no comprehensive, publicly confirmed deal is in place and the outcome is uncertain.
- Economists and trade experts warn the duties could push U.S. consumer prices higher, disrupt integrated North American supply chains and prompt fresh Canadian retaliation that would deepen bilateral strain and affect voters ahead of the U.S. midterm elections.