'We have more work to do', says Canada negotiator as US trade deadline looms

August 22, 2026

Canada and the United States are racing against a midnight deadline to finalize a trade deal that would avoid additional 50% US tariffs on Canadian goods. Canadian trade minister Dominic LeBlanc spent eight hours in intense negotiations with US counterparts in Washington, stating there is still "more work to do" as the deadline approaches. The proposed deal reportedly includes reduced but still substantial US tariffs on Canadian steel, aluminum, and automobiles, in exchange for Canada reopening its market to American alcohol and dairy products and removing retaliatory tariffs.

Who is affected

Canadian workers (potentially 90,000 jobs at risk)
Canadian steel and aluminum producers
Canadian automobile manufacturers
Canadian dairy farmers and the dairy industry
American alcohol and dairy producers
Quebec farmers specifically
Residents of Ontario steel-producing cities
Prime Minister Mark Carney and his government
Provincial premiers (Wab Kinew of Manitoba, Christine Fréchette of Quebec, Doug Ford of Ontario, and premiers of Nova Scotia and Yukon)
Conservative opposition leader Pierre Poilievre
Canadian businesses and stakeholders broadly

What action is being taken

Negotiators are continuing to work until the midnight deadline
Dominic LeBlanc is meeting with US trade representative Jamieson Greer and other negotiators in Washington
Provincial premiers are analyzing the potential deal's impact on their provinces
Quebec Premier Christine Fréchette is analyzing what the deal means for Quebec farmers before deciding on restoring US alcohol sales
Premiers of Nova Scotia and Yukon are preparing to restore US alcohol sales

Why it matters

This trade negotiation is critical because failure to reach a deal would trigger an additional 50% US tariff on a wide range of Canadian goods, potentially resulting in the loss of 90,000 Canadian jobs according to economic estimates. The deal represents a major test for Prime Minister Carney, who campaigned on taking a tough approach to dealings with the Trump administration, yet now faces the difficult reality of needing to make concessions to avoid economic damage. The negotiations also highlight Canada's economic vulnerability to US trade policy and the challenge of balancing domestic political pressures against the practical need to maintain trade relations with its largest trading partner.

What's next

Negotiators will continue working until the midnight Friday deadline
Provincial premiers must decide whether to restore sales of US alcohol in their provinces
Prime Minister Carney will need to secure buy-in from provincial leaders for any agreement
The US is reportedly starting negotiations on a new deal with Mexico
If a deal is reached, the full framework will need to be made public

Read full article from source: BBC