Canada-U.S. Talks Race to Stop 50% Tariffs by Wednesday

Canadian and United States officials are holding late-stage negotiations in Washington aimed at preventing a new set of trade tariffs from taking effect if no agreement is reached by Wednesday, officials involved said.

According to the officials, the proposal under discussion would apply a 50% duty to roughly $20 billion in Canadian imports. They added the targeted goods account for about 5% of Canada’s total imports, putting both delegations under a tight deadline to settle remaining issues.

Washington deadline heightens pressure on both governments

Officials described the discussions as a final push Officials described the discussions as a final push to avoid a sudden change in trading conditions. They said the talks are intended to prevent the new tariffs while also addressing disputes tied to measures that already affect cross-border commerce. Canadian officials are seeking to halt the proposed levies and are also pressing for changes to current U.S. measures that affect major Canadian industries, officials said. Both sides are working to close out the last major points before the cutoff, according to the officials. U.S. demands focus on autos, dairy quotas, and alcohol rules Officials said a central U.S. request is for Canada to remove retaliatory tariffs applied to American automobiles. U.S. negotiators are also asking for changes to Canada’s dairy supply management quotas, according to the officials.

priority is lifting provincial bans that restrict sales

Another U.S. priority is lifting provincial bans that restrict sales of U.S. alcohol in Canada, officials said. The requests have been framed as necessary steps to narrow remaining gaps ahead of Wednesday.

Canada seeks relief on existing U.S. tariffs

Canadian negotiators, led by Prime Minister Mark Carney, are seeking reciprocal easing of existing U.S. tariffs, officials said. They cited steel, aluminum, lumber, and manufacturing as areas Canada wants included in any package.

Officials described a framework under discussion that would tie market-access changes and related concessions to risks facing major Canadian industrial sectors if the new 50% tariffs take effect. The officials said the talks are focused on matching demands and counter-demands within the limited time remaining.

Escalation risk and limits on concessions

Officials cautioned that missing the Wednesday deadline could intensify trade tensions and complicate future diplomatic engagement. Prime Minister Carney has said the government is prepared for multiple outcomes from the talks, officials noted.

At the same time, officials said Carney faces domestic pressure to avoid concessions that could prompt backlash from provincial leaders or the broader public. As an indicator of the political sensitivity, officials cited public sentiment showing 74% of Canadians report negative impacts from the ongoing trade dispute.

Negotiations are continuing in Washington, and the next steps depend on whether both sides can align on outstanding demands before the deadline, officials said.