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US, Canada hold last-minute trade talks

Aug 18, 2026, 6:29pm EDT
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Mark Carney speaks with Donald Trump
Leah Millis/Reuters

Canadian Prime Minister Mark Carney spoke with US President Donald Trump on Monday, as Ottawa scrambles to avert new 50% tariffs that take effect at midnight on Wednesday.

A deal to avoid the duties sits on Trump’s desk, Politico reported, but one sticking point is US tariffs on Canadian vehicles. Carney described the negotiations as “very delicate and intense,” and Ottawa has warned Washington that the tariffs could jeopardize further trade talks: A breakdown of the US-Mexico-Canada Agreement could cost the US economy $1 trillion by 2035, per one analysis.

Around a third of Canadians favor a forceful response to Washington’s threats, according to a poll, and only 18% want to offer concessions like ending provincial bans on American alcohol.

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