Canada Seeks Deal with Trump Amid 50% Tariff Threat

US President Donald Trump’s new tariffs on Canada are set to take effect on Wednesday (August 19). Before that, Ottawa is making a final attempt to reach an agreement with Washington to reduce the impact of the tariffs.

Although officials from both countries have held several rounds of talks over the past three weeks, no major progress has been made. Canadian negotiators fear that failure to reach a deal could result in tariffs of up to 50% on hundreds of Canadian products.

The United States accuses Canada of treating American automobile, dairy and alcohol industries unfairly. Washington is particularly demanding the removal of provincial restrictions on US alcohol products in Canada.

Meanwhile, Canada’s automobile industry is already under pressure from US tariff policies. The two countries also have a long-running dispute over US access to Canada’s dairy market.

Reaching an agreement before the new tariffs take effect is now Ottawa’s top priority. However, with Washington maintaining its demands, uncertainty remains over whether the two sides can reach a last-minute deal.