Sources said the US and Canada have agreed a temporary plan to spare some
Canadian goods from proposed 50% tariffs and have submitted it to President
Trump for approval. Trump will decide whether tariffs scheduled to take effect
at midnight local time on Aug. 19 are implemented. Negotiators held intensive
talks; the US is seeking removal of Canadian retaliatory measures on autos and
alcohol and changes to dairy supply management, while Canada wants lower US
tariffs on autos and other goods. Officials hope a limited deal could pave the
way for broader USMCA talks, but auto tariffs remain the core dispute. If
imposed, the measures would affect only part of bilateral trade but could
jeopardize negotiations covering nearly $1tn in US‑Canada goods and services.
Canadian Prime Minister Carney faces domestic political risk from concessions;
US tariff action could add pre-midterm economic pressure in swing states such as
Maine and Michigan.
