CANADA-U.S. TRADE TEAMS MEET AGAIN BEFORE TARIFF DEADLINE

Developing story: Tariff timing, product coverage, negotiation status and official statements may change before the Saturday deadline.

Top Canadian and U.S. trade negotiators are meeting again in Washington on Friday in a last push to finalize a deal before new U.S. tariffs are scheduled to take effect Saturday. Reuters reported that Canadian minister Dominic LeBlanc is due to meet U.S. Trade Representative Jamieson Greer for a third consecutive day of talks.

The deadline is immediate. President Donald Trump has said he will impose a new 50 percent tariff on about $20 billion worth of Canadian goods at 12:01 a.m. Eastern time Saturday if a deal is not reached. The duties would affect a targeted but politically sensitive portion of the trade relationship between two countries whose economies are deeply integrated.

LeBlanc said after more than three hours of talks Thursday that the two sides were very close to a deal but that more work was necessary. That phrasing signals progress without certainty. Companies that would be affected by the tariffs still do not have final terms, product coverage or legal text.

The dispute is part of nearly two years of strained Canada-U.S. trade relations. Trump has used tariff threats to push for concessions on alcohol access, dairy rules, automotive trade and other issues. Canada has sought tariff relief and protection for sectors that depend heavily on the U.S. market.

A deal could also clear the way for broader talks on renewal of the U.S.-Mexico-Canada Agreement. If the bilateral dispute remains unresolved, it could poison the atmosphere for the larger North American trade framework, affecting autos, agriculture, steel, aluminum, energy and manufacturing supply chains.

The pressure is especially acute for small and mid-sized Canadian exporters. A 50 percent tariff can make shipments immediately uncompetitive, even if the broader national trade impact is limited relative to total Canada-U.S. commerce. Businesses must decide whether to ship, delay, reroute or renegotiate before they know whether the deadline will move again.

The political risks run both ways. Ottawa must avoid appearing to concede too much under threat, while Washington must avoid tariff measures that raise U.S. prices before the midterms. Both governments therefore have incentives to announce at least an interim arrangement, but the final details may be difficult to present as a win on both sides.

What is confirmed is that Canadian and U.S. negotiators are meeting again Friday and that a Saturday tariff deadline remains in place. What remains unresolved is whether the talks produce a final deal, a further delay or a new trade shock that would reshape the next phase of North American economic negotiations.

Fact-check date: August 21, 2026. Article type: News. Sources: Reuters; Office of the United States Trade Representative; Government of Canada. Developing note: Tariff timing, product coverage, negotiation status and official statements may change before the Saturday deadline.