Canada and the United States are discussing a deal in which Ottawa would address the Trump administration’s list of trade demands in exchange for dropping threats of new tariffs. A source familiar with the talks said on Friday.
According to Reuters on August 8, 2026, Trump has imposed tariffs on many Canadian imports since returning to power last year and in July announced a 50% tariff on many imports, which will take effect on August 19 unless Ottawa addresses U.S. complaints.
The Globe and Mail was the first to report on the concessions Canada was prepared to make.
As part of the proposed deal, Canada would eliminate tariffs on U.S. cars and reach an agreement on the U.S. interpretation of how dairy quotas should be allocated. and seek to deliver American alcohol to stores in key Canadian provinces.
In return, the U.S. side will reduce existing tariffs on Canadian steel and aluminum, according to the source, who asked not to be named due to the sensitivity of the situation.
Translated by Nay Tola
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