US, Canada hold last-minute talks to block 50% tariffs

Canada and the United States remained locked in last-minute negotiations Tuesday to avert a sweeping new wave of U.S. tariffs on Canadian goods set to take effect Wednesday. The duties, announced by President Donald Trump last month under a rarely used 1930 trade law, threaten to impose a 50 percent tariff on a wide array of exports valued at nearly $20 billion annually.

The tariffs, scheduled to begin on August 19, target products including dairy, automobiles and parts, alcoholic beverages, furniture, cement, and sporting goods like hockey equipment. The White House invoked Section 338 of the Tariff Act of 1930, stating the measures are a response to what it calls discriminatory trade practices by Canada that have harmed U.S. exports. Officials pointed to specific declines, noting that U.S. motor vehicle exports to Canada fell 22 percent from April 2025 through March 2026, while almost all Canadian provinces have ceased purchasing U.S. alcoholic beverages, leading to an 81 percent drop in those imports.

The impending deadline has spurred intense diplomatic activity. Canadian Trade Minister Dominic LeBlanc and Chief Negotiator Janice Charette have held frequent meetings in...