Updated
Updated · Global News · Aug 15
Canada, U.S. Remain Far From Tariff Deal Before Aug. 19 Deadline as 50% Levies Loom
Updated
Updated · Global News · Aug 15

Canada, U.S. Remain Far From Tariff Deal Before Aug. 19 Deadline as 50% Levies Loom

3 articles · Updated · Global News · Aug 15

Summary

  • Canadian and U.S. negotiators are still well short of a trade deal after a week of Washington talks, leaving Ottawa racing to avert new U.S. tariffs due Aug. 19.
  • A 50% U.S. tariff threat covers roughly $28 billion of Canadian goods, while any deal now under discussion would still leave some tariffs on steel, aluminum, autos and lumber.
  • Softwood lumber remains a major sticking point: U.S. officials are not interested in cutting duties now near 45%, and Canadian sources say Ottawa had to fight to get forestry discussed at all.
  • Autos and dairy are also contentious, with one proposal cutting CUSMA-compliant auto tariffs to 10%-15% from 25% and Washington seeking wider tariff-free access for U.S. dairy into Canada.
  • Dominic LeBlanc stayed in Washington through the weekend as Prime Minister Mark Carney pushed a three-step strategy: strike a sectoral tariff deal now, build energy and defense partnerships next, then revisit CUSMA later.

Insights

With a massive tariff deadline looming, will Canada sacrifice its protected dairy sector to save its broader economy?
As the US refuses to extend CUSMA, are North American supply chains facing permanent disruption regardless of a last-minute deal?
Could stubborn lumber and auto tariffs permanently inflate consumer costs and reshape cross-border manufacturing forever?