US, Canada race toward trade deal as tariff tensions ease

Canada and the United States are nearing a long-awaited trade agreement, with President Donald Trump and Prime Minister Mark Carney presenting the negotiations as a major step toward stabilizing economic ties between the two countries, BBC reports.

Trade negotiators met for the third consecutive day on August 19 after Trump paused a new round of tariffs he had threatened to impose on Canadian goods.

Although the details have yet to be officially released, reports indicate the agreement could cover Canadian steel, aluminum, automobiles and lumber, as well as US alcohol exports.

US Trade Representative Jamieson Greer said Washington was “very happy” with the progress and that the deal would eliminate “some of the irritants” between the two countries.

“We feel confident that we've reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy,” Greer told reporters following a 45-minute meeting with Carney.

Trump said the agreement would be welcomed by US farmers and manufacturers and claimed Canada had agreed to eliminate tariffs on US agricultural products. Asked whether Washington would reduce its own tariffs on Canadian goods, he said it would do so “by a little bit.”

Carney said “significant progress” had been made toward an agreement providing “the best terms” for Canada’s strategic sectors and greater certainty over future US-Canada trade.

Under a potential deal, US tariffs on Canadian steel and aluminum could reportedly fall to 25% from 50%, while tariffs on Canadian-made vehicles could drop from 25% to 15%.

Carney also briefed his cabinet and provincial leaders. Nova Scotia Premier Tim Houston said the prime minister had asked provinces to restore US alcohol sales, which were restricted last year in retaliation for US tariffs.

Meanwhile, Canada’s dairy supply management system will remain “entirely intact,” according to Minister LeBlanc.

Business groups on both sides have urged a deal, warning that further tariffs could hurt both economies. Canadian Manufacturers and Exporters President Dennis Darby said negotiations were “close,” raising hopes for a return to largely tariff-free trade under USMCA.

By Vafa Guliyeva