Macro
US and Canada Engage in Last-Minute Talks Before Tariff Deadline
The United States and Canada held last-minute trade discussions ahead of a deadline for President Donald Trump’s proposed 50% tariffs on selected Canadian goods. Canadian Prime Minister Mark Carney described the negotiations as intense and delicate, with a phone conversation between him and Trump occurring on Monday.
The tariffs, which are scheduled to take effect at 12:01 a.m. Eastern time on August 19, would impact approximately $20 billion worth of Canadian products, including vehicles, alcoholic beverages, and dairy goods. Trump justified the tariffs under Section 338 of the Tariff Act of 1930, claiming that Canadian policies discriminate against U.S. exports.
The U.S. Trade Representative indicated that Washington remains open to negotiations, while Canada is pursuing a broader trade agreement but is prepared to respond if the new U.S. measures are implemented. As of Tuesday, neither government had announced a resolution.
FAQ
What are the proposed tariffs on Canadian goods?
President Donald Trump proposed a 50% tariff on selected Canadian goods, which would impact approximately $20 billion worth of products, including vehicles, alcoholic beverages, and dairy goods.
When are the tariffs scheduled to take effect?
The tariffs are scheduled to take effect at 12:01 a.m. Eastern time on August 19.
What justification did Trump provide for the tariffs?
Trump justified the tariffs under Section 338 of the Tariff Act of 1930, claiming that Canadian policies discriminate against U.S. exports.
What is Canada's response to the proposed tariffs?
Canada is pursuing a broader trade agreement but is prepared to respond if the new U.S. measures are implemented.
Have the U.S. and Canada reached a resolution regarding the tariffs?
As of Tuesday, neither government had announced a resolution following the last-minute trade discussions.