Canada and U.S. Still Far Apart on Trade Deal Ahead of Tariff Deadline

OTTAWA – August 17, 2026 – Canada and the United States remain distant from a draft trade agreement

Keenan Hutka August 17, 2026 1 minute read

Traffic crossing the Ambassador Bridge between Canada and the United States

The Ambassador Bridge crossing between Windsor and Detroit. Photo: Mikerussell, CC BY 3.0, via Wikimedia Commons

OTTAWA – August 17, 2026 – Canada and the United States remain distant from a draft trade agreement despite frequent high-level meetings, with a new round of 50 per cent U.S. tariffs on Canadian goods set to take effect on August 19.

Trade Minister Dominic LeBlanc met virtually with U.S. Trade Representative Jamieson Greer on Sunday in what his office described as a “constructive” discussion. LeBlanc has held multiple meetings with Greer in recent weeks as Ottawa seeks to avert or limit the new levies.

The proposed tariffs would cover nearly $20 billion in Canadian goods and, unlike earlier measures, would apply even to products that qualify under the Canada-United States-Mexico Agreement. Key sticking points include Canadian dairy quotas, provincial restrictions on U.S. alcohol, and auto-related issues.

A Canadian government source previously indicated both sides wanted a deal before the deadline, but LeBlanc told an advisory committee on Friday that significant gaps remain. Business groups and provincial leaders continue to warn of potential economic disruption if no agreement is reached.