- US and Canada remain divided days before Aug 19 tariff deadline on $20 billion Canadian goods
- Trump administration plans 50% tariffs on Canadian products under a 1930s US law
- Tariffs target diverse Canadian imports including wine, dairy, and hockey equipment
Days before a deadline of Aug. 19, when the Trump administration is expected to apply hefty 50% tariffs on approximately US $20 billion of Canadian products, negotiators from the United States and Canada are still sharply split.
U.S. Trade Representative Jamieson Greer and Canada's Trade Minister Dominic LeBlanc held crucial negotiations over the weekend, but they were unable to reach a consensus, raising concerns in key Canadian industries that the trade escalation is now certain.
This week, Canada will be subject to a fresh round of 50% U.S. tariffs that, according to companies, could result in job losses in some already suffering industries and complicate larger talks over the future of North America's free trade agreement.
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Last month, U.S. President Donald Trump used Section 338 of the Tariff Act of 1930, a Depression-era U.S. law, to impose duties beginning on Wednesday on a variety of Canadian imports, including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment, and other items.
According to this clause, trading partners who are thot to have discriminated against American goods may be subject to punitive penalties of up to 50%.
Since taking office again last year, Trump has taken a strong stance on trade with Canada, which includes his unprecedented use of this authority. After Mexico, Canada is the United States' second-largest trading partner.
According to U.S. Census Bureau data, the duties would cover around $20 billion worth of Canadian goods, or roughly 5.2% of the $383 billion worth of commodities the United States imported from Canada in 2025.
Dominic LeBlanc, Canada's minister in charge of U.S. trade relations, and Janice Charette, its chief trade negotiator, have intensified negotiations with their American counterparts as the tariff deadline approaches.
According to a source briefed on the subject, LeBlanc told an advisory group on Friday that despite many discussions, Canada and the United States are still distant from negotiating a draft trade agreement. LeBlanc and Charette continued their discussions over the weekend in Washington.
The additional penalties would apply even to goods that are eligible for preferential treatment under the U.S.-Mexico-Canada Agreement, which has protected a large portion of Canadian commerce from tariffs, in contrast to many of Trump's previous tariffs. This would put Canada's economy at further danger.
Dan Kelly, president of the Canadian Federation of Independent Business, stated, "If the tariffs go into effect, they will cause massive dislocation for small businesses that rely on U.S. clients and American buyers that rely on Canadian suppliers."
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