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Home » US and Canada move closer to final trade deal as President Trump’s tariff deadline approaches
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US and Canada move closer to final trade deal as President Trump’s tariff deadline approaches

Editor-In-ChiefBy Editor-In-ChiefAugust 21, 2026No Comments3 Mins Read
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On August 20, 2026, Dominic LeBlanc (C), Canada’s Minister of Trade with the United States and Canada, arrived at the headquarters of the United States Trade Representative in Washington, DC, to meet with United States Trade Representative Jamieson Greer.

Mandel Gunn | AFP | Getty Images

The United States and Canada have yet to announce a final trade deal that would prevent President Donald Trump’s new tariffs on hockey sticks, wine and other Canadian products from going into effect early Saturday.

The 50% retaliatory tariffs were originally scheduled to go into effect on Wednesday, but President Trump said in an 11th-hour Truth social post that he would delay them for three days to allow Washington and Ottawa to finalize a tentative agreement.

Trump’s post suggested the deal was nearly complete “subject to completion of the document.” But trade officials ended further talks in Washington on Wednesday and Thursday without a final agreement.

“We’re very close,” Canadian-U.S. Trade Minister Dominic LeBlanc told reporters Thursday afternoon. “We’re making progress and we’re going to stay here and do the work that needs to be done until we get to that point.”

LeBlanc noted that Canadian negotiator Janice Charette is still in talks with U.S. Trade Representative Jamieson Greer and other Trump administration officials.

“Canadians are looking forward to an agreement that is in the economic interests of Canada and Canadian workers,” LeBlanc said.

If a deal is not reached by 12:01 a.m. ET on Saturday, 50% tariffs will be imposed on about $20 billion worth of imports. Companies have warned that tariffs could reduce sales, and the threat alone is already taking a toll.

Negotiators have remained tight-lipped about the details of the agreement and other outstanding issues. The New York Times reported Thursday that Trump’s existing tariffs on Canadian steel, aluminum and lumber imports were the biggest concern, citing people familiar with the talks.

LeBlanc and his office declined to comment to CNBC on how metal tariffs would be factored into the negotiations.

President Trump said Wednesday that the U.S. may agree to lower those tariffs, and suggested lower duties on Canadian cars could also be on the table. Trump also suggested the deal could restart a proposed oil pipeline from Alberta to Nebraska that was scrapped in 2021 by then-President Joe Biden.

Read more CNBC’s politics and policy coverage

The Trump administration said Canada is committed to lowering trade barriers to the United States, but did not provide details.

President Trump said Wednesday that Canadian tariffs “don’t exist for our farmers.” The threat of an impending 50% tariff was based in part on allegations of Canadian discrimination against the U.S. dairy industry. Canada has not confirmed Trump’s claims.

“We are now moving towards an agreement that strengthens Canada’s advantages, including securing the best terms in each of Canada’s most important strategic areas and providing more certainty about our future trade relationship,” Prime Minister Mark Carney said on Wednesday’s X-Post.

The impending 50% tariff was activated last month under Section 338 of the Tariff Act of 1930, which allows the president to impose tariffs in response to discrimination or unfair trade practices. But the Depression-era law has rarely, if ever, been invoked and has been ignored for decades.

This is developing news. Please check back for the latest information.

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