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US‑Canada Trade Talks Near Deadline as Carney Seeks Trump’s Support

UnbarNewsUpdated 18 Aug 2026· 2 min read

With the expiration of a temporary trade pact approaching, U.S. envoy John Carney makes a last push to secure a permanent agreement while Canada resists major concessions.

US‑Canada Trade Talks Near Deadline as Carney Seeks Trump’s Support

Negotiators from the United States and Canada are racing against a looming deadline that could trigger a new round of American tariffs on Canadian goods. The temporary extension of the 2018 trade agreement is set to expire in the coming weeks, and both sides are under pressure to lock in a longer‑term deal before the clock runs out.

John Carney, the U.S. special representative for trade negotiations with Canada, has been making a final appeal to President Donald Trump to endorse a compromise that would keep tariffs at bay. Carney’s meetings in Ottawa this week focused on narrowing the gaps that have persisted since the last round of talks, particularly around dairy market access, automotive rules of origin, and dispute‑resolution mechanisms.

Canadian officials, however, have signaled little appetite for sweeping concessions. While they acknowledge the economic pain that renewed tariffs could cause—especially for sectors like lumber, aluminum and agricultural products—their position remains that any new pact must preserve the protections built into the existing framework. Trade minister Mary Ng emphasized that Canada will not “give away” core industries without clear, reciprocal benefits.

U.S. industry groups have warned that a failure to reach an agreement could raise costs for American manufacturers that rely on Canadian inputs, potentially eroding competitiveness. At the same time, Canadian businesses fear that a tariff resurgence would hurt export revenues and destabilize supply chains that have become increasingly integrated across the border.

Both governments have expressed a willingness to continue dialogue, but the window for a deal is narrowing. If no consensus is reached before the deadline, the United States is prepared to re‑impose the 7.5 percent tariff on Canadian steel and aluminum that was lifted under the previous extension. The outcome will likely shape North‑American trade dynamics for years to come, making Carney’s last‑minute push a pivotal moment in the bilateral relationship.

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