Ottawa, August 21, 2026 — The Europe Today: Canada and the United States are nearing an agreement on a trade deal aimed at easing months of tariff tensions and countermeasures, although Canadian officials said further work is required to finalise the arrangement.
Canadian Minister responsible for Canada-US Trade Dominic LeBlanc made the remarks after meeting with US Trade Representative Jamieson Greer in Washington as negotiators race to reach an agreement before a looming tariff deadline.
“We’re very close. We continue to make progress, and we’re going to stay here and do the work that’s necessary,” LeBlanc told reporters following the talks.
The negotiations have gained urgency after US President Donald Trump threatened to impose a new 50 percent tariff on approximately $20 billion worth of Canadian goods. The proposed measures have added to months of trade tensions between the two neighbouring countries.
According to sources familiar with the negotiations, the emerging agreement could reduce the US tariff on Canadian-built vehicles from 25 percent to 15 percent, while tariffs on Canadian steel and aluminium could be reduced to 25 percent from higher levels.
The talks are also addressing broader bilateral trade issues, including market-access concerns and Canadian provincial restrictions affecting US products. Canadian Prime Minister Mark Carney has urged provincial leaders to help facilitate progress in the negotiations.
While both sides have reported substantial progress, key details remain under discussion. Officials are seeking to finalise an agreement that would ease tariff pressures, provide greater certainty for businesses and help stabilise economic relations between the two countries.
