Canada-U. S. Trade Minister Dominic Le Blanc, left, and United States Trade Representative Jamieson Greer speak to reporters in Washington, D. C., on Wednesday, Aug. 19, 2026, the day after the Trump administration temporarily delayed tariffs on Canada. (Kelly Geraldine Malone/The Canadian Press via AP)
Kelly Geraldine Malone/Kelly Geraldine Malone/The Canadian Press via AP
WASHINGTON (AP) – Canada and the United States moved closer Wednesday to finalizing a trade agreement that would avert threatened 50% U. S. tariffs; a senior Canadian official called the emerging terms “a very good deal for Canada” while warning that negotiations were not finished.
President Donald Trump said the agreement was “very fair” to both sides and predicted that U. S. farmers and manufacturers would gain from it. The tariffs affecting about $20 billion worth of imports from Canada have been postponed until Saturday at 12:01 a. m.
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The senior Canadian official mentioned that this emerging agreement would offer more certainty; protect Canada’s dairy sector and jobs at risk due to new tariffs; and maintain what Ottawa considers favorable trade conditions with the U. S.
Prime Minister Mark Carney urged provincial leaders during a briefing to allow U. S. alcohol back onto store shelves; Nova Scotia Premier Tim Houston noted this step was aimed at addressing one of Trump’s main trade complaints. Houston along with two other premiers expressed support for how talks were progressing but he added that whether Canadians would actually purchase U. S. alcohol again “is a whole other discussion.”
The senior official spoke anonymously since they were not authorized to publicly discuss negotiations before an agreement is finalized.
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Trump’s tariff threat could impact five percent of exports
Last month Trump used an unprecedented legal authority dating back to the Great Depression to declare that America would impose 50% tariffs on $20 billion worth of goods-about five percent-coming from Canada including items like hockey sticks and tongue depressors.
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Trump claimed that Canada discriminates against American exports such as autos alcohol and cheese while expressing frustration over Canada’s retaliation with its own tariffs when he imposed levies on their products.
Dairy market issues persist
While details regarding Wednesday’s agreement remain unclear; Trump asserted that Canada had agreed to eliminate tariffs related to U. S agricultural products stating “The tariffs will be non-existent for our farmers.” He further claimed those who previously faced high rates into Canada will see them reduced all the way down to zero.
Currently Canada’s dairy system allows limited imports at lower tariff rates but much higher ones come into play once those limits are exceeded; The U. S argues that Canada’s supply management system makes it harder for American dairy producers to access their market fully.
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Article continues below this ad<p dominic leblanc minister responsible for canada-us trade told reporters in washington his country’s agriculture sector will be well protected while maintaining its strong stance.
The senior canadian official was even clearer saying supply management was “not up for negotiation” while reaffirming protection for canada’s dairy system.
This leaves another major question unanswered: how can canada uphold supply management while also granting u. s farmers greater access as trump claims they will receive?
What’s in it for canada?
canada hasn’t publicly specified what relief from tariffs washington has proposed.
However ,the senior canadian official statedthat this emerging deal would prevent new fifty percenttariffs , safeguard many jobs ,and ensure favorable access for canada into u. s markets.
The official also mentioned,  ; this deal allows canada more room  ; to focus  ; on domestic economic goals including infrastructure projects , attracting foreign investments , & diversifying beyond just reliance  ; on u. s. a.
This is important because provincial leaders have suggested any trade deal wouldn’t revert back to past relations between canada & us.
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< H7 type=”submit-comment-box-1642367280619 }`#comment-58555558`/html This statement came from Scott Moe premier saying "the old status quo is not possible." While British Columbia premier David Eby noted regardless if an agreement happens "we won't return things back."
<'”>trump raised prospect reviving keystone xl pipeline</ h3 ><P trumps recent announcement about pausing these proposed new taxes led him suggesting resurrecting keystone xl pipeline project which had been canceled previously by president joe biden. trump didn’t clarify if it's included within current agreements but indicated interest shown toward potential plans helping carry crude oil originating from canada towards american refineries. This aligns better with long-standing objectives held by canadians rather than being perceived merely as concessions offered by americans.
An ongoing issue concerning imports of american liquor persists</ h3 >A substantial majority comprising eight out ten provinces situated across canadas territory impose restrictions or outright bans involving american alcoholic beverages resulting primarily following previous taxes levied against specific goods coming from there alongside frustrations linked through repeated remarks indicating intentions attempting rendering them equivalent amongst states positioned southward alone. Ontario holds special significance being home base containing LCBO which ranks among leading purchasers globally bringing close estimates surpassing nearly one billion canadians dollars annually pertaining solely consisting exclusively sourced items arriving directly throughout its operational branches involved. Given numerous complaints raised surrounding existing barriers relative sales currently being disrupted owing pandemic repercussions experienced severely impacting local economies travel patterns witnessed declining sharply noticeably whereas even replacing stock won’t necessarily guarantee successful transitions overall leading towards recovery periods remaining uncertain extending laterally corresponding timelines seeing total reinstatements required without tangible impacts still lingering behind appropriately maintaining balance established beforehand across boarders additionally stressing importance reassessing systems laid forth ensuring proper functionality returns efficiently moving ahead seamlessly thereafter. The White House has indicated commitments included within deals suggestively meant addressing restrictions placed earlier however carney remains unable issuing direct orders directing provinces towards immediate restoration processes taking shape. Consequently repercussions extend broader influencing levels widespread feelings traveling crossing borders diminished significantly spanning upwards drop highlighting low percentages observed recently despite hopeful signs showing positive progressions continuing still leaves uncertainties unaddressed leading further conversations needing ongoing evaluations examining exact implementation strategies benefiting all parties engaged subsequently shifting forward.
< P=Overall conclusion summarizes pathway likely opening doors future larger arrangements stemming longer-term discussions revolve around renegotiations related north american accord known simply acronymically termed us-mexico-canada-agreement already underway amidst differing diplomatic exchanges occurring amongst participants. Senior officials representing both nations affirmatively pointed out solving pressing problems posed through immediate conflicts associated enabled pursue broader engagements conversely favorably shaping outcomes collectively prioritizing preventing escalated tensions brewing likely resurfacing consequentially henceforward optimizing supportive frameworks accordingly evolving response dimensions comprehensively forging relationships built stronger resiliently responding adapting times encountering challenges equally fostering cooperation ultimately aiming cultivate harmonious interactions whilst working together strive remain aligned respective interests identifying common grounds propelling stability achieved visibly gaining footing every advance made relevant conducive living circumstances promoted positively impacting partnerships pursuing ambitions collaboratively realizing potentials unlocked ahead through mutual dialogues conducted regularly enhancing trust gradually rekindling optimistic views reciprocally nurtured forming rapport continuing appreciate successes attained throughout journey shared subsequently establish meaningful connections treasured immensely lasting legacies woven intricately integrating aspects shaping lives profoundly intertwined aspiring futures diligently awaiting fulfillment cherished community bonds forged leaving indelible marks imprinted lovingly etched narratives crafting beautifully unfolding stories reflecting realities intertwining experiences creating pathways blossoming vibrantly filled aspirations reaching culmination hopes realized brightening horizons endless possibilities paving road ahead illuminating journeys embarked upon guiding light embracing changes welcomed graciously fostering resilience inspired unwavering hope optimism ignited envision unfoldings yet untold radiating waves evermore inviting growth flourishing revitalized dreams soaring skyward. Both nations maintained incentives focusing avoiding escalation tensions arising unexpectedly challenging current events reflective contexts studied intensely observing sentiments fluctuating greatly especially keeping close attention paying heed provided insights demonstrating collective awareness sensitivity required balancing differing expectations encouraging dialogue vital navigating complexities encountered effortlessly. Following through these initiatives becoming essential forging paths coordinating efforts maximizing synergies aligning shared priorities looking forward optimistically exploring potential avenues developing fruitful endeavors sustaining reciprocal benefits emerge defined shaped clarity hope understanding resonate within hearts humanity standing united pursuing harmony strengthening ties growing communities nurtured inclusivity empowerment valuing contributions enriching diverse cultures celebrated wholeheartedly transitioning dynamically growing ever stronger collaborations fostered thriving environments brimming possibilities sparking inspirations fueling journeys shared exploring beyond borders transcending limitations promoting peace unity embraced recognized fundamentally serving common good uplifting everyone involved believing brighter tomorrows envisioned awaited fervently earnestly committed always striving shine brightly lighting world therein reflecting values noble ideals integral preserving dignity equity justice fairness compassion standing firm advocating rights safeguarding freedoms nourished fostering connections grounded love kindness reaching heights boundless forever grateful celebrating remarkable achievements made together envision future glimmering bright nurturing profound impacts born enduring legacies sustained continuously flowing forth endlessly marked determined perseverance dedicated empowering success motivated passionate spirits driven dreams unfurl reaching magnificent expanses stretched wide open skies welcoming embrace ushering dawns unfolding promises eternally cherished remembering remembered fondly engraved lasting impressions etched deeply minds collectively woven tapestry intricately binding destinies intertwined sharing adventure fulfilling aspirations enriched life meaning fulfilled harmoniously blending distinct identities honoring traditions stories precious sharing cultivating understanding mutual respect enabling coexistence inspiring greater purpose linking hearts bridging gaps nurturing empathy transforming world compassion united front displaying strength virtue courage reflected actions contribute healing restore faith inspire others journey uplifted spirits celebrate unique beauties diversity create symphony played exquisite notes resonating joyfully filling air alive joyous energy permeates atmosphere envelops souls awakening consciousness gifting moments gratitude acknowledging blessings plentiful savored wholeheartedly rejoicing colors splashed vivid landscapes illuminated pathways traversed seeking growth enlightenment experiencing every step taken undeniably fulfilling realize dreams manifested glow soft warm embraces strengthen connections deepen roots nourish seedlings planted flourishing gardens harvest abundance surrounded warmth love radiant sunshine encouraging thrive bright illuminate darkness delivering harmony radiate grace uniting hearts lifting spirits soaring transcending boundaries enriching existence weaved beautifully cultivating legacy enriched prosperity thriving futures carried forward enriched lives touched gently woven threads luminous brilliance shining shine reflects core beliefs instilling hope flowing emanating joy igniting flames burning brightly souls dancing merrily gracefully encompassed kindred spirits harmoniously orchestrated symphony melodies heard echo realms eternity embedded timelessness crafted lovingly art form embodying essence everlasting witnessing continuance celebrations reminiscing moments encapsulated joy happiness laughter echo heartstrings always remembering deeply cherished embrace our collective journey weaving splendid narrative echoes forever resounding generations flourish knowing together magical unfoldings await.
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