US, Canada negotiators race to ink a deal as Trump’s tariff deadline looms
Al Jazeera
•Fri, 21 Aug 2026 19:20:17 +0000
📰 What Happened
US and Canadian negotiators met for a third straight day in Washington to finalise a trade deal before new American tariffs take effect on Saturday. President Donald Trump has threatened a 50-percent import tax on around $20 billion worth of Canadian goods, though tariffs were already paused earlier this week. Experts said a fresh last-minute breakthrough or another extension seemed likely, while noting any deal would not remove all US tariffs on Canada.
🔍 The Backstory
The US and Canada have been locked in roughly 18 months of trade friction that escalated sharply after Trump returned to office in 2025 and threatened broad tariffs. Ottawa responded with its own levies, and the contentious issue of provincial bans on US alcohol sales has further complicated talks. The two countries are each other's largest trading partners, making any default surprisingly painful for both.
🎯 Why It Matters
For the US and its closest ally, the outcome will shape the price of everything from autos and lumber to dairy and alcohol. Last-minute tariff threats and deadlines create economic uncertainty that ripples through supply chains and consumer prices. Readers in both countries will feel the effect of these negotiations in their household bills and local industries.
US and Canadian negotiators met for a third straight day in Washington to finalise a trade deal before new American tariffs take effect on Saturday. President Donald Trump has threatened a 50-percent import tax on around $20 billion worth of Canadian goods, though tariffs were already paused earlier this week. Experts said a fresh last-minute breakthrough or another extension seemed likely, while noting any deal would not remove all US tariffs on Canada.
The US and Canada have been locked in roughly 18 months of trade friction that escalated sharply after Trump returned to office in 2025 and threatened broad tariffs. Ottawa responded with its own levies, and the contentious issue of provincial bans on US alcohol sales has further complicated talks. The two countries are each other's largest trading partners, making any default surprisingly painful for both.
For the US and its closest ally, the outcome will shape the price of everything from autos and lumber to dairy and alcohol. Last-minute tariff threats and deadlines create economic uncertainty that ripples through supply chains and consumer prices. Readers in both countries will feel the effect of these negotiations in their household bills and local industries.