OTTAWA — Canada and the United States are entering the final hours of high-stakes trade negotiations as U.S. President Donald Trump’s threatened 50 per cent tariffs on a wide range of Canadian goods are scheduled to take effect just after midnight Wednesday.
With less than 24 hours remaining before the August 19 deadline, Canadian officials are continuing intensive discussions in Washington in an effort to reach an agreement and prevent another major escalation in the Canada-U.S. trade dispute.
Trump signed an executive order imposing the 50 per cent tariffs on numerous Canadian products, ranging from cement and construction-related goods to consumer products such as hockey sticks.
Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief trade negotiator Janice Charette have been in Washington since last week as negotiations intensified ahead of the deadline.
On Monday, the Canadian representatives met with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick as both governments continued efforts to resolve outstanding disagreements.
Prime Minister Mark Carney said Monday that he expects to speak directly with Trump before the tariffs are scheduled to take effect, potentially providing another opportunity for the two leaders to reach an understanding.
Carney described the negotiations as “very intense and delicate,” reflecting the economic and political stakes facing both countries.
The prime minister also indicated that Ottawa is preparing for the possibility that negotiations may not produce an agreement before the deadline. He said the federal government has developed a plan that would “cover all eventualities” if the United States proceeds with the additional tariffs.
The approaching deadline creates significant uncertainty for Canadian exporters, manufacturers and businesses that depend heavily on access to the American market. A 50 per cent tariff could substantially increase the cost of Canadian products entering the United States and place additional pressure on industries already dealing with existing U.S. trade measures.
The latest threat comes amid broader negotiations over several contentious areas in the Canada-U.S. economic relationship, including automobiles, steel and aluminum, softwood lumber, dairy products and restrictions on American alcohol.
With negotiations continuing and a possible Carney-Trump conversation expected before the deadline, attention is now focused on whether a last-minute agreement can prevent the tariffs from taking effect.
If no breakthrough is reached, the new duties are scheduled to begin just after midnight on Wednesday, August 19, marking another significant escalation in the trade dispute between Canada and its largest trading partner.