Canada and the United States are close to finalising a trade agreement that would ease tariffs on certain Canadian goods and U.S.
Canada and the United States are close to finalising a trade agreement that would ease tariffs on certain Canadian goods and U.S. agricultural exports. Negotiators met three times in three days after President Trump paused a planned increase in tariffs on Canadian products. The agreement is expected to address steel, aluminium, automobiles, lumber and U.S. alcohol. U.S. Trade Representative Jamieson Greer said the United States was pleased with the progress and that the agreement would protect American workers and strengthen the North American economy. He said he would brief Congress and stakeholders on the details. President Donald Trump said the deal would benefit U.S. farmers and manufacturers and that Canada would eliminate tariffs on U.S. agricultural products. Prime Minister Mark Carney said the agreement would secure favourable terms for Canada's strategic sectors. The United States is seeking removal of tariffs on U.S. automobiles and adjustments to Canada's dairy quotas to allow greater access for U.S. cheese producers. Canadian officials said the dairy supply management program will remain unchanged. Business leaders expressed optimism that the deal would reduce uncertainty for cross‑border trade. Dennis Darby, president of Canadian Manufacturers and Exporters, said negotiations were progressing and that a final agreement was likely. The agreement could be completed by Friday. Reports indicate that U.S. tariffs on Canadian steel and aluminium would be reduced from 50% to 25%, and the tariff on Canadian‑made vehicles could be lowered from 25% to 15%. The deal could represent the first step toward restoring tariff‑free trade under the North American free trade agreement.
- Publisher
- bbc
- Reliability
- high
- Published
- 8/20/2026, 10:00:32 AM
- Retrieved
- 8/20/2026, 10:00:32 AM
- Relevance
- 80%
- Confidence
- 85%

