US, Canadian trade teams meet again as tariffs deadline looms


Dominic LeBlanc, Canadian minister responsible for Canada-U.S. Trade, arrives for a meeting with United States Trade Representative Jamieson Greer at the office of the United States Trade Representative (USTR) in Washington, D.C., U.S., August 20, 2026. REUTERS/Tierney L. Cross

WASHINGTON, Aug 21 (Reuters) - Top ⁠trade negotiators from Canada and the U.S. met for the third day running in Washington on ⁠Friday to try to finalize a trade deal before threatened new American tariffs come into ‌effect on Saturday.

A deal could mark a detente in what has been 18 months of tense relations that started when President Donald Trump imposed tariffs on key imports from Canada, prompting Ottawa to retaliate with a suite of countermeasures.

Trump says he will impose ​a new 50% tariff on about $20 billion worth of Canadian goods ⁠at 12:01 a.m. EDT (0401 GMT) on Saturday ⁠if a deal is not reached.

Canada's minister responsible for trade with the U.S., Dominic LeBlanc, did not speak ⁠to ‌reporters as he arrived for the talks.

LeBlanc met Greer for more than three hours on Thursday and said the two sides were "very close" to a deal, but added that more work was ⁠necessary.

Even if a deal is reached, Prime Minister Mark Carney could ​find it hard to sell it ‌to Canadians and the influential premiers of the 10 provinces.

A Leger opinion poll showed on ⁠Wednesday that 56% of ​Canadians want Carney to make no further concessions.

Sources say an agreement is expected to cut the top-line tariff on Canadian-built vehicles to 15% from 25% and halve tariffs on Canadian steel and aluminum to 25%. Ontario, a major steel ⁠and aluminum producer, wants the tariffs scrapped.

Carney is calling on major ​provinces to rescind their ban on sales of U.S. alcohol, which is a major irritant for Washington.

Wab Kinew, the premier of Manitoba, on Thursday said Trump was "very weak" and Canada should take advantage.

"I think we've got the ⁠upper hand - they're back on their heels right now. They're coming to us for a deal, and so I think we should fight," he told reporters.

Canada, though, is a tenth the size of the United States and sends around 70% of all exports south of the border, which makes it uniquely vulnerable to punitive ​U.S. trade actions.

U.S. Vice President JD Vance on Wednesday mocked Carney, saying ⁠he "comes in and puffs his chest out and says, 'I’m going to, like, out-tough Donald Trump'."

In a recording obtained by ​the Canadian Press, Vance can then be heard saying "It's hilarious ‌because Carney presents this as some victory for Canada when ​fundamentally, like, they climb down on a lot of issues."

Vance was speaking at a fundraiser in Southampton, New York.

(Writing by David Ljunggren; Editing by Katharine Jackson, Philippa Fletcher and Sanjeev Miglani)

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