Phoenix 24
Washington and Ottawa are negotiating against the clock as a new trade confrontation threatens one of the world’s most integrated economic relationships.
WASHINGTON–OTTAWA | August 2026. The United States and Canada entered last-minute negotiations to prevent 50% tariffs on approximately $20 billion in Canadian goods from taking effect at 12:01 a.m. Eastern Time on Wednesday. The threatened measures would affect products ranging from hockey sticks to medical tongue depressors. Canadian Prime Minister Mark Carney described the talks as intense and sensitive while refusing to disclose negotiation details.
Carney and US President Donald Trump spoke by telephone as officials from both countries searched for a compromise. Nearly 72% of Canadian goods exports went to the United States last year, making access to the American market essential for Canada’s economy. Approximately $2 billion in trade and 330,000 people cross their shared border every day.
Washington is pressing Canada to purchase additional US military equipment, including F-35 fighter jets, participate in Trump’s Golden Dome missile defense system and expand American access to critical minerals. Ottawa, meanwhile, wants relief from existing US tariffs on Canadian steel, aluminum and softwood lumber. The negotiations are also unfolding as both governments prepare to revisit the United States–Mexico–Canada Agreement.
Trump has invoked Section 338 of the Tariff Act of 1930, a provision that allows tariffs of up to 50% against countries accused of discriminating against American companies. The authority has never previously been used and does not require a formal investigation or predetermined expiration date. Any agreement must balance Canada’s need to avoid a damaging trade war with Carney’s political obligation not to appear submissive to Washington.
Los hechos no se doblan.
Facts that do not bend.