Trucks pass over the Peace Bridge between Canada and the United States, in Fort Erie, Ontario, on August 18, 2026. Fresh US tariffs are due to take effect on a range of Canadian goods after midnight Tuesday, as Ottawa seeks a deal to avert President Donald Trump’s planned 50-percent duties. (AFP photo)
Canada and the United States have made “substantial progress” toward a trade agreement, but important issues remain unresolved, Canadian Prime Minister Mark Carney has said after President Donald Trump postponed 50 percent tariffs on selected Canadian goods.
Trump announced the three-day reprieve late Aug. 18, only hours before the duties were due to take effect.
The tariffs have been postponed until Aug. 21.
The delay was based on the fact that Canada and the United States, “subject to the finalization of documents, have a DEAL,” Trump wrote on his Truth Social platform.
Carney, however, struck a more cautious note.
“Substantial progress has been made, although there is important work still to be done,” he said.
Ottawa and Washington have held intensive negotiations over a broader trade agreement and changes to the United States-Mexico-Canada Agreement, which Trump signed during his first term.
The Office of the U.S. Trade Representative said the prospective agreement would include wider access for American goods, economic security commitments and alignment on digital trade.
Carney said the talks were intended to address outstanding trade issues and provide greater certainty for Canadian businesses, workers, farmers and families.
Trump ordered the new tariffs last month, accusing Canada of discriminatory treatment of American alcohol, automobiles and dairy products.
The duties would cover goods including wine, hockey sticks and cement, affecting about $20 billion in Canadian exports to the United States.
Oxford Economics estimated that the tariffs would affect about 5.5 percent of Canadian exports to the United States, worth roughly $20 billion.
Although the overall risk to the Canadian economy would be modest, the consultancy said manufacturers in central Canada would be more exposed.
Canadian negotiators are also seeking relief from existing U.S. tariffs on the country’s automobile, steel, lumber and aluminum industries.
Trump separately raised the possibility of reviving the Keystone XL oil pipeline, which was canceled under former President Joe Biden, but provided no details.
