It was Tuesday, Aug. 18. Late in the day, after weeks of discussions, the Canadians were feeling so discouraged that some of them started loading their bags into a van to head to the Washington airport and return home when news broke that Trump and Carney were on a call and there might be a chance for an agreement after all. They returned upstairs at the Canadian embassy.
Trump announced in a Truth Social post at 10:15 p. m., less than two hours before his midnight deadline, that he would grant a three-day pause until Friday and hold off on new tariffs he threatened as punishment for Canada’s supposedly “discriminatory” practices against U. S. autos, dairy, and alcohol. Canada and the U. S. “have a DEAL” subject to finalizing documents, the president stated.
U. S. President Donald Trump says he’s hitting pause for three days on new tariffs that were supposed to hit Canada just after midnight. The president notes that the duties were delayed “based on the fact that Canada and the U. S. A., subject to finalization of documents, have a DEAL!” (Aug. 18, 2026)
The Canadian Press
Carney, being more cautious, only stated that both sides had made “significant progress,” adding that negotiators still had “important work” ahead.
Dominic Le Blanc, Carney’s main cabinet minister in the negotiations, went back to Ottawa the next morning for Carney’s briefing with cabinet members and premiers. Canada’s chief negotiator Janice Charette remained in Washington to finalize the deal’s text.
Everything would fall apart within three days.
This is something Prime Minister first recognized last summer but never strongly urged Canadians to accept it. He always maintained that U. S.-imposed tariffs against Canadian goods are illegal violations of CUSMA (Canada-United States-Mexico Agreement) trade rules , asserting “no deal is better than bad deals.”Trump has enacted several laws imposing tariffs against Canada alongside other allies , negotiating bilateral agreements only if major concessions or investment commitments are provided. Most exports from Canada qualified for exemptions from many duties if they met CUSMA requirements but Trump’s specific sectoral tariffs targeting “strategic” industries like autos , steel , aluminum , and lumber allowed no exemptions specifically for Canadians either. His latest set of tariffs represents an unprecedented application of legislation dating back nearly 100 years. In recent talks, the position taken by United States was clear :“The United States hasn’t made agreements where it pays tariffs entering another country,” remarked one official from Canada.“That simply isn’t going happen.” You can’t even initiate conversation unless you concede upfront you’ll bear costs entering America while its exporters avoid facing any fees when shipping products here.”
U S President Donald Trump arrives Ellington Airport Houston Tx August twenty-seven two thousand twenty-six
Mark Schiefelbein/AP
“For several weeks I’ve been relaying messages effectively highlighting possible outcomes achievable towards respective partners across border including area concerning automobiles ,”Greer revealed CBC interview stating truck-related dues belonged separate categories entirely emphasized noting discrepancies amongst economic implications between heavier vehicle designs relative other types demonstrating markedly different operational mechanisms influencing eventual taxation amounts owed towards specific imports coming into North America.
Lutnik labeled inclusion request onto larger truck platforms as absurd claim asserting falsehoods fabricated solely justify reasoning behind abrupt cessation pointing responsibility squarely located within political realms driving decisions onward. Greer indicated earlier occurrences resembling trends established through historical context recalled ‘sixties’ wherein governmental mandates enforced expectations requiring American manufacturers establish assembly facilities locally producing output destined retail networks hence productivity gaps surface now harming domestically situated firms consequently hurting workforce dynamics leading diminishing growth patterns seen across US manufacturing capability dimensions especially linked auto-sourcing channel outputs.
“We possess sizable void visible exists employment structure nationally particularly linked automobile production industries which significant role played contributing factors feeding deficits prevalent amidst labor market today.”
On topic regarding provisionally regulated metals oversight Greer countered claims suggesting document drafts contained verbiage obligating surrendering autonomy furthermore highlighted assurances pledged reaffirming cooperation intentions intending merge strategies enhancing efficiency combined resources supporting objectives shared illustrating notion solidifying collective security efforts encouraging collaboration spanning regions throughout North America implying commitment protect integrity within supply chains proving detrimental effects arise otherwise causing disruptions effect social economic landscape critically undermining core principles surrounding stability inherent free trade arrangements forming foundational precepts underpinning commerce engagements undertaken multilateral partnerships henceforth. As dialogues progressed steadily fluctuated tensions escalated gradually becoming apparent externally exerted pressures surfaced prompting occasional heated exchanges noted among participants involved discussions-one insider confirmed mutual frustrations expressed openly encountered dialogue sessions conducted between representatives encompassing range viewpoints exhibited varied interests signifying marked divergences amid strategic priorities faced moving forward-
Canada Withdraws
Just 20 minutes before Friday’s new midnight deadline, Carney issued an urgent two-page statement announcing Canada’s withdrawal from negotiations with the U. S. When he spoke to reporters the following morning, Carney explained he ended talks due to last-minute demands from the U. S., which he said would have severely impacted critical sectors of Canada’s economy-particularly autos; imposed U. S. control over Canadian international trade policy; and jeopardized protections for French language rights as well as Canadian culture and sovereignty. Top American officials argued it was actually Canada who raised unrealistic new requests. U. S. Trade Representative Jamieson Greer insisted Canada walked away from what could’ve been their best deal offered by any country. The Star interviewed federal and provincial officials from Canada along with other sources involved in or informed about these negotiations as they unfolded but agreed not to disclose their identities so they could speak freely about why everything went wrong. Tonda Mac Charles shares an inside look at how a trade deal both parties thought was nearly finalized suddenly fell apart. /You Tube A lot of blame was directed at U. S. Commerce Secretary Howard Lutnick who is influential with Trump and oversees Section 232 tariffs placed on Canadian autos, steel, aluminum, and lumber under claims of protecting U. S. national security. Lutnick has long been involved in negotiations regarding tariffs; he arrived at discussions led by Greer in Washington on Monday, Aug. 17. The Canadian team characterized Greer as a skilled negotiator acting honestly who believed they were close to achieving a fair deal. U. S. Commerce Secretary Howard Lutnick speaks with journalists outside a federal courthouse in Washington D. C., on Aug. 27, 2026. Mariam Zuhaib AP Photo/Mariam ZuhaibThe Deal That Wasn’t
</pp No one expected there would be an agreement without tariffs according to three senior Canadian officials.This is something Prime Minister first recognized last summer but never strongly urged Canadians to accept it. He always maintained that U. S.-imposed tariffs against Canadian goods are illegal violations of CUSMA (Canada-United States-Mexico Agreement) trade rules , asserting “no deal is better than bad deals.”Trump has enacted several laws imposing tariffs against Canada alongside other allies , negotiating bilateral agreements only if major concessions or investment commitments are provided. Most exports from Canada qualified for exemptions from many duties if they met CUSMA requirements but Trump’s specific sectoral tariffs targeting “strategic” industries like autos , steel , aluminum , and lumber allowed no exemptions specifically for Canadians either. His latest set of tariffs represents an unprecedented application of legislation dating back nearly 100 years. In recent talks, the position taken by United States was clear :“The United States hasn’t made agreements where it pays tariffs entering another country,” remarked one official from Canada.“That simply isn’t going happen.” You can’t even initiate conversation unless you concede upfront you’ll bear costs entering America while its exporters avoid facing any fees when shipping products here.”
Main Points of Contention
Discussions included lowering current sectoral automobile tariff levels down from twenty-five percent towards fifteen percent accompanied by permitting exemptions based around cars containing fifty percent domestic components. However, the US rejected further requests surrounding exempting parts manufactured within Canadia resulting therefore overall effective tariff rates exceeding average profit margins among car makers leading production outside Candia borders towards US soil. Reducing tariff rates imposed upon imported steel downwards forty-nine percent but again limited provisions based around certain volumes leaving quotas whereby original fifty-percent rate remained applicable above those limits through what is known popularly called“tariff-rate quotas”. US additionally requested harmonization regarding restrictions pertaining foreign sourced steels aimed preventing transshipment routes via third party countries regardless whether free trade agreements existed between those nations. Meanwhile another official noted no assurance given ensuring local producers wouldn’t face future anti-dumping allegations. Next came adjusting aluminum taxes dropping them similarly cutting existing fifty-per cent charge approximately half way toward twenty-five per cent overall though originally excluded proposals involving tariff-rate quotas left insiders claiming Americans were vehemently lobbying administration seeking harsher regulations surrounding aluminium frameworks including products derived directly using aluminum materials meanwhile rejecting proposed guarantees allowing preferential treatment should another nation reduce import levies impacting competitiveness between competing global suppliers. Finally eliminating ten per cent levy associated with softwood timber albeit existing countervailing or anti-dumping duty structures remain unchanged; ongoing disputes centered around softwood timber would find resolution deferred into separate conversations while failing provide assurance indicating possibility inflicting additional charges arising through channels created specifically designed target exporting businesses located within Canadia erasing potential gains gained thus far. Automobiles plus steel represented biggest hurdles throughout negotiation according multiple sources shared evidence suggesting ; “We weren’t just addressing part automotive industry we examined entirety automotive sectors,”expressed senior official representing Canadia observing intent clearly showed reducing existing tax burdens across various segments meant consideration must extend beyond light vehicles encompassing medium-heavy trucks too–although contrary realization didn’t become evident until August nineteenth whilst hashing out wordings during final stages drafting agreement.”Backlash From America
Greer along with Lutnick currently pushing back vigorously concerning assertion made previously.“For several weeks I’ve been relaying messages effectively highlighting possible outcomes achievable towards respective partners across border including area concerning automobiles ,”Greer revealed CBC interview stating truck-related dues belonged separate categories entirely emphasized noting discrepancies amongst economic implications between heavier vehicle designs relative other types demonstrating markedly different operational mechanisms influencing eventual taxation amounts owed towards specific imports coming into North America.
Lutnik labeled inclusion request onto larger truck platforms as absurd claim asserting falsehoods fabricated solely justify reasoning behind abrupt cessation pointing responsibility squarely located within political realms driving decisions onward. Greer indicated earlier occurrences resembling trends established through historical context recalled ‘sixties’ wherein governmental mandates enforced expectations requiring American manufacturers establish assembly facilities locally producing output destined retail networks hence productivity gaps surface now harming domestically situated firms consequently hurting workforce dynamics leading diminishing growth patterns seen across US manufacturing capability dimensions especially linked auto-sourcing channel outputs.
“We possess sizable void visible exists employment structure nationally particularly linked automobile production industries which significant role played contributing factors feeding deficits prevalent amidst labor market today.”
On topic regarding provisionally regulated metals oversight Greer countered claims suggesting document drafts contained verbiage obligating surrendering autonomy furthermore highlighted assurances pledged reaffirming cooperation intentions intending merge strategies enhancing efficiency combined resources supporting objectives shared illustrating notion solidifying collective security efforts encouraging collaboration spanning regions throughout North America implying commitment protect integrity within supply chains proving detrimental effects arise otherwise causing disruptions effect social economic landscape critically undermining core principles surrounding stability inherent free trade arrangements forming foundational precepts underpinning commerce engagements undertaken multilateral partnerships henceforth. As dialogues progressed steadily fluctuated tensions escalated gradually becoming apparent externally exerted pressures surfaced prompting occasional heated exchanges noted among participants involved discussions-one insider confirmed mutual frustrations expressed openly encountered dialogue sessions conducted between representatives encompassing range viewpoints exhibited varied interests signifying marked divergences amid strategic priorities faced moving forward-
