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euronews
Midnight showdown looms as US and Canada meet to avoid Trump tariffs
In a last-minute effort to prevent significant tariffs, US and Canadian officials are engaged in urgent talks as the deadline approaches. The proposed 50% tariffs on approximately $20 billion worth of Canadian imports have raised concerns for both countries, highlighting historical trade tensions and the potential impact on domestic politics. Canadian Prime Minister Mark Carney and US President Trump have been in communication to address the ongoing dispute, which has deep roots in areas like softwood lumber and dairy markets. With nearly 72% of Canadian exports going to the US, both sides are eager to avoid a destructive trade war. Failure to reach an agreement could have rippling effects on consumer prices and the political landscape just ahead of crucial midterms in the US.
MonitorConfidence: HighImmediate horizon
Published 18 Aug 2026, 15:06 UTC3 min read
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Summary
TL;DR
- US and Canada in intense negotiations to avoid tariffs
- Proposed tariffs could impact $20 billion in Canadian goods
- Calls for more Canadian military purchases as part of negotiations
- Trump's tariffs aim to pressure Canada over trade concessions
- Political implications loom close to US midterm elections
Interesting facts
- The proposed tariffs include everyday products like hockey sticks and tongue depressors.
- A petition to oust the US Ambassador to Canada has gained significant traction.
- Historical reference to the Tariff Act of 1930, which worsened the Great Depression, underlines the seriousness of the situation.