Commodities August 20, 2026 10:12 AM

Canada and U.S. Negotiators Reconvene in Washington as Tariff Deadline Looms

High-level talks continue to seek a pact that could roll back recent tariffs on vehicles, steel and aluminum

By Sofia Navarro
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Senior trade officials from Canada and the United States met for a second consecutive day in Washington as negotiators pushed to finalize a deal that would reduce a range of tariffs and avert new duties scheduled for the weekend. Canadian minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer held talks, with Canada’s chief negotiator Janice Charette also present. Additional meetings between top diplomats were planned at the White House.

Canada and U.S. Negotiators Reconvene in Washington as Tariff Deadline Looms
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Key Points

  • Senior officials from Canada and the U.S. met in Washington for a second consecutive day to finalize a trade agreement aimed at reducing tariffs on vehicles, steel and aluminum - sectors directly affected by these duties.
  • Canada’s Dominic LeBlanc and U.S. Trade Representative Jamieson Greer met at 12:15 p.m. EDT (1615 GMT) with Canada’s chief trade negotiator Janice Charette in attendance; additional diplomatic talks were scheduled between U.S. Secretary of State Marco Rubio and Canadian Foreign Minister Anita Anand at the White House.
  • Under the proposed terms, the top-line tariff on Canadian-built vehicles would fall to 15% from 25%, and tariffs on Canadian steel and aluminum would be reduced to 25%; President Donald Trump said Washington would make some concessions and indicated the deal could remove Canadian tariffs on U.S. goods.

Senior trade negotiators from Canada and the United States returned to the bargaining table in Washington on Thursday in an effort to complete an agreement that could roll back a series of reciprocal tariffs and suspensions that have strained bilateral trade.

Canada's minister responsible for trade with the U.S., Dominic LeBlanc, was scheduled to meet U.S. Trade Representative Jamieson Greer at 12:15 p.m. EDT (1615 GMT), according to a statement from LeBlanc's office. Janice Charette, Canada’s chief trade negotiator, was also slated to participate in the session.

The Thursday meeting marked a second straight day of high-level discussions. LeBlanc and Greer conferred on Wednesday and described the talks as having produced significant progress toward a settlement that could avert an American plan to levy additional tariffs starting on Saturday.

In parallel diplomatic engagement, U.S. Secretary of State Marco Rubio was scheduled to meet Canadian Foreign Minister Anita Anand at the White House later on Thursday, indicating coordination across trade and foreign affairs channels as Ottawa and Washington seek a common agreement.

According to a person familiar with the matter, the draft arrangement under discussion would reduce U.S. levies on Canadian-made passenger vehicles and light trucks, and would scale back duties on Canadian steel and aluminum. The proposed terms cited by the source would cut the top-line tariff on Canadian-built vehicles to 15% from 25% and halve tariffs on Canadian steel and aluminum to 25%.

President Donald Trump said on Wednesday that Washington would make some tariff concessions and indicated the negotiated package could include the removal of Canadian tariffs on U.S. goods. Following the Wednesday meeting between LeBlanc and Greer, Prime Minister Mark Carney briefed Canada’s provincial premiers on the state of discussions.

Some premiers relayed that Carney urged them to consider lifting a ban on U.S. alcohol - a specific irritant for Washington - if a final deal is reached between the two countries. The premiers’ accounts followed the briefings after the Wednesday session.

The tariff dispute has its roots in measures introduced last year when the United States imposed levies on imports of Canadian steel, aluminum and vehicles, prompting retaliatory duties from Ottawa. This week, President Trump postponed until 12:01 a.m. EDT (0401 GMT) on Saturday the imposition of a new 50% tariff on about $20 billion worth of Canadian goods, citing progress in negotiations and the need to finalize documentation.


Contact: Trade and diplomatic offices in Ottawa and Washington provided scheduling details on the Thursday meetings; no further procedural specifics were disclosed.

Risks

  • Negotiations may not conclude in time - the U.S. postponed a planned 50% tariff on about $20 billion of Canadian goods until 12:01 a.m. EDT (0401 GMT) on Saturday, but there remains uncertainty whether a final agreement will be completed and documented before that deadline. Impacted sectors: manufacturing, automotive, metals.
  • Provincial restrictions could complicate implementation - Prime Minister Mark Carney reportedly urged premiers to lift a ban on U.S. alcohol as part of the broader settlement, indicating domestic policy constraints could affect the scope of concessions. Impacted sectors: beverages, retail.
  • Reciprocal tariff removal is contingent on finalized documentation - while negotiators have reported progress, the removal of Canadian duties on U.S. goods and the specific tariff cuts are subject to formal sign-off and implementation. Impacted sectors: cross-border trade, exporters.

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