CANADA-U.S. TRADE DEAL DEADLINE NEARS AS QUEBEC PUSHES BACK

Developing story: Tariff deadlines, provincial responses, market-access terms and product coverage may change before the Saturday deadline.

Top Canadian and U.S. trade negotiators met again in Washington on Thursday as a Saturday deadline approached for avoiding a new round of U.S. tariffs, while Quebec’s premier warned that the talks were far from over and demanded more detail on protections for provincial industries. The parallel developments showed that a possible bilateral deal still faces domestic political resistance inside Canada.

Reuters reported that Canadian Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer were scheduled to meet for a second consecutive day, joined by Canada’s chief negotiator Janice Charette. The talks follow President Donald Trump’s three-day pause on threatened 50 percent tariffs, which would otherwise have hit about $20 billion in Canadian goods.

The proposed deal could reduce U.S. tariffs on Canadian-built vehicles from 25 percent to 15 percent and cut steel and aluminum tariffs from 50 percent to 25 percent, Reuters reported, citing sources. Those changes would be meaningful for Canadian industries that have been under pressure from tariff uncertainty and cross-border supply-chain disruption.

The politics are harder. The Associated Press reported that Quebec Premier Christine Fréchette said the talks were far from over and called for more details from Prime Minister Mark Carney, especially on dairy and forestry protections. She also resisted pressure to quickly resume U.S. alcohol sales through Quebec’s state-run SAQ stores.

Alcohol access has become a visible U.S. demand because several Canadian provinces limited or halted U.S. alcohol sales during the tariff fight. Carney can encourage premiers to restore access, but provincial governments control their own alcohol systems. That limits Ottawa’s ability to deliver a uniform national concession quickly.

Dairy remains another sensitive issue. Trump has complained about Canada’s supply-management system, while Canadian officials insist key protections remain intact. In Quebec, where dairy and forestry are politically powerful, any perceived concession can become a major provincial election issue.

The tariff pause has reduced immediate pressure but not eliminated risk. Businesses still need to know product coverage, effective dates, exemptions, quota levels and whether tariff reductions will be tied to U.S. content rather than broader North American content. Those details determine whether a deal truly stabilizes trade or only delays another fight.

What is confirmed is that senior Canada-U.S. negotiators met again and that Quebec warned negotiations are not finished. What remains unresolved is whether a final deal emerges before Saturday, whether provinces accept alcohol-related concessions and whether auto, steel and aluminum tariff cuts are large enough to satisfy Canadian industry.

Fact-check date: August 20, 2026. Article type: News. Sources: Reuters; Associated Press; Office of the United States Trade Representative; Government of Canada. Developing note: Tariff deadlines, provincial responses, market-access terms and product coverage may change before the Saturday deadline.