US and Canada hold last-minute talks to stop Trump’s 50% tariffs

The White House and Canadian Prime Minister Mark Carney’s government are locked in intense negotiations ahead of a 12:01 a.m. Wednesday deadline set by President Trump. If no agreement is reached, the administration has threatened to impose 50 percent tariffs on roughly 20 billion dollars’ worth of Canadian products entering the United States.

Canadian Prime Minister Mark Carney acknowledged Monday that talks remain underway, describing the negotiations as “very intense and delicate.” Carney and President Trump also spoke by phone Monday afternoon in what appears to be a last-minute effort to avoid a major escalation.

For decades, the United States and Canada have enjoyed one of the world’s closest economic relationships. But many Trump supporters argue that friendship should not prevent Washington from confronting longstanding trade imbalances that have disadvantaged American workers, manufacturers, and farmers.

President Trump maintains that Canada has restricted access to its protected dairy market, imposed barriers on American products, and benefited from trade arrangements that have not always been reciprocal.

Administration officials say the President’s goal is simple: strengthen American manufacturing, reduce dependence on foreign supply chains, and secure better terms for U.S. businesses.

Former U.S. trade officials note that neither side appears eager for a prolonged trade battle. Canada sends nearly three-quarters of its exports to the United States, making access to the American market critical for the Canadian economy.

At the same time, the Trump administration sees an opportunity to secure additional commitments from Ottawa. Reports indicate Washington wants Canada to purchase more American defense equipment, participate in President Trump’s proposed Golden Dome missile defense initiative, and expand cooperation on critical minerals needed for advanced technology and national security.

Supporters of the President argue those objectives serve America’s strategic interests by reducing reliance on China and strengthening North American economic security.

The tariff threat comes as the administration prepares to renegotiate the U.S.-Mexico-Canada Agreement, often called USMCA. President Trump originally negotiated that agreement during his first term, replacing NAFTA and promising a better deal for American workers.

White House officials believe the possibility of additional tariffs provides leverage as negotiations move forward.

The President is relying on a rarely used provision of federal law known as Section 338 of the Tariff Act of 1930. The measure allows the President to impose tariffs of up to 50 percent on imports from countries deemed to discriminate against American businesses.

Trump argues Canada has unfairly restricted U.S. exports in several sectors, including automobiles, alcohol, and dairy products.

Trade Representative Jamieson Greer defended the administration’s position, saying countries that retaliate against U.S. trade actions should not expect Washington to simply look the other way.

Canada was among the few countries that responded with retaliatory tariffs after the President imposed broader trade measures last year.

Not surprisingly, Trump’s tough stance has generated criticism north of the border. Some Canadians have expressed frustration with the President’s repeated comments about Canada becoming America’s 51st state, and a petition calling for the removal of the U.S. ambassador has collected hundreds of thousands of signatures.

Still, supporters of the President say his approach reflects a willingness to use America’s economic power to obtain better trade deals, something they believe previous administrations were often reluctant to do.

As negotiators work against the clock, both governments are searching for a compromise that could prevent a new round of tariffs and preserve stability in one of the world’s most important trading relationships.

For now, all eyes remain on Washington and Ottawa as the midnight deadline approaches.

PHOTO- United States Trade Representative Jamieson Greer, center, leaves the U.S. Department of Commerce following a meeting with Canadian officials, in Washington, Monday, Aug. 17, 2026. (Kelly Geraldine Malone/The Canadian Press via AP)