The United States and Canada are scrambling to finalize a deal before President Trump’s new Section 338 tariffs, which would impose 50 percent tariffs on nearly US$20 billion worth of Canadian goods (including dairy products, cement, hockey sticks and wine) take effect early Wednesday, August 19, reported CTV News.
The two governments have engaged in tense, fast moving negotiations that could trade Canadian concessions—including commitments on energy, defense (including Trump’s “Golden Dome” boondoggle), and critical minerals—for the U.S. shelving the tariffs and easing existing steel and aluminum duties. The stakes are high: failure to reach an agreement could fracture North American trade, trigger Canadian retaliation, and derail efforts to update the U.S.-Mexico-Canada Agreement (USMCA), deepening a yearlong cycle of escalating trade conflict between the two close allies, the Washington Post noted.
Canadian Prime Minister Mark Carney stated that all options are on the table in terms of retaliation against the proposed tariff, or other punitive actions by the U.S., noted the Washington Post.
