# US and Canada Nearing Last-Minute Trade Deal Trade negotiations continue as Trump's new tariffs deadline looms. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-08-21 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/19a175f2-20ac-4227-990f-e9b54faa73e5 ## Last-Minute Negotiations US and Canadian trade ministers are holding final talks to reach a deal before Saturday midnight. Trump's threat to impose 50% tariffs on Canadian imports like hockey sticks and wine could take effect within hours. Canadian Trade Minister Dominic LeBlanc stated they are very close to an agreement. ## Tense Wait Trump announced a three-day delay of the tariffs in a Truth Social post. This postponement gave both countries time to finalize a draft deal. However, talks on Wednesday and Thursday failed to produce a final agreement. Details of the negotiations and sticking points remain confidential. ## Economic Impacts The proposed 50% tariffs on approximately $20 billion worth of Canadian goods are causing concern in the business world. Companies warn these tariffs could cripple their sales. Even the threat alone has already had negative effects. Existing tariffs on steel, aluminum, and lumber imports are a major point of contention. ## Hope for Agriculture Trump claimed Canada would eliminate tariffs for US farmers. Allegations of Canada discriminating against the US dairy industry are among the main reasons for this tension. However, Canada has not confirmed Trump's claims. Prime Minister Mark Carney said they are approaching a deal that secures advantages in strategic sectors. ## Keystone XL Revival? Trump hinted the deal might revive the Keystone XL pipeline project. Canceled by President Biden in 2021, this project would have run from Alberta to Nebraska. The US administration stated Canada has committed to reducing trade barriers but provided no specifics. ## Historic Law Invoked The threatened 50% tariffs were proposed last month under Section 338 of the 1930 Tariff Act. This law allows the president to impose tariffs in cases of discrimination or unfair trade. However, this Great Depression-era law has rarely been used in decades. ## Canada's Strategy Prime Minister Carney stated on X that they are moving toward a deal securing the best terms in strategic sectors. This agreement is expected to reduce uncertainty in bilateral trade relations. Canada aims to maintain advantages in key sectors of trade with the US. ## Outlook and Implications The US-Canada trade dispute could impact global supply chains. Without a deal, trade volume between the two nations may shrink significantly. Automotive, agriculture, and energy sectors would be most affected. The outcome of these negotiations holds critical importance for the North American economy. ## Sources covering this story - https://www.cnbc.com/2026/08/21/trump-canada-tariffs-trade-deal-deadline.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._