Business & Finance

Canada and US push negotiations to deadline to finalize trade agreement

Negotiators work late to avert higher US tariffs as Canadian leaders weigh potential industry concessions.

Updated Aug 24, 2026 · 00:33 UTC1 reports

The short version

Canadian Trade Minister Dominic LeBlanc and US Trade Representative Jamieson Greer held marathon talks ahead of a midnight Friday deadline to avert new US tariffs.
Leaked proposals suggest the US may lower existing tariffs on Canadian steel, aluminum, and autos in exchange for Canadian dairy access and the removal of retaliatory tariffs.
Canadian Prime Minister Mark Carney faces domestic resistance from opposition figures and provincial leaders over potential concessions.
It remains unconfirmed whether negotiators reached a final deal before the expiration of the deadline or if new US tariffs will take effect.

Dominic LeBlanc spent roughly eight hours meeting with Jamieson Greer in Washington on Friday ahead of a midnight deadline to finalize a tentative trade pact.[BBC News]
President Donald Trump said on Friday that talks were moving along and expressed optimism that a deal with Canada could be achieved.[BBC News]
Leaked terms indicate the US could reduce tariffs on Canadian steel and aluminum from 50% to 25%, and on autos from 25% to 15%.[BBC News]
Reported Canadian concessions include granting broader market access to American dairy producers, lifting retaliatory tariffs, and ending provincial bans on US alcohol sales.[BBC News]
Economist Trevor Tombe published an estimate indicating Canada could lose 90,000 jobs if threatened new US tariffs are enacted.[BBC News]

The full official terms of the agreement have not been released publicly, leaving reported tariff levels and market access conditions unconfirmed.[BBC News]
It is uncertain whether key provincial premiers will agree to lift restrictions on US alcohol sales to fulfill proposed Canadian commitments.[BBC News]