Prime Minister Mark Carney and U.S. President Donald Trump were on the phone Tuesday hours before the U.S. was set to bring in punishing tariffs on a slate of Canadian goods — but Carney’s office gave no details of the call or whether they are close to a deal to avert those tariffs.
Trump is set to impose 50 per cent levies on $28-billion worth of Canadian goods at one minute after midnight, targeting a range of products from hockey sticks and honey to wine and cement.
Top trade officials from Ottawa have been trying to hammer out a deal with their American counterparts to prevent that from happening. Canada also wants to see relief on existing tariffs that target steel, aluminum, lumber and autos.
But it was not clear early Tuesday evening whether such a deal could be reached.
Trade talks enter final hours
Canada-U.S. Trade Minister Dominic LeBlanc left the Monday meeting with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick saying the job was “not yet done.”
Carney and Trump also spoke on the phone Monday. Carney’s office and the White House gave no details about either of their calls, and Trump had not posted on Truth Social about the talks by Tuesday evening.
Before the Monday call, the prime minister said at a press conference that Canada was negotiating from a place of strength and referred to the negotiations as “very delicate and intense.” He also said his government had a plan ready for any situation.
Greer has warned that the U.S. will not tolerate any retaliation.
The looming deadline leaves many, including Quebec Premier Christine Frechette, anxious.
“There’s a lot at stake,” Frechette said at a press conference in Montreal.
“I mean, we’re talking about imposing a 50 per cent tariff on products coming from Quebec which were protected by the (Canada-U.S.-Mexico Agreement on trade) until today.”
She said the impact of the tariffs would be “dramatic for many sectors,” and said she’s asked the federal government to be ready to help businesses and workers.
Businesses brace for tariff impact
Canada’s beekeeping industry has warned the tariff on its exports to the U.S. — which account for some 40 per cent of all exports — could decimate the industry.
Trump’s latest move marks a new step in his tariff regime, which has faced setbacks from American court rulings that have declared some levies invalid.
This time, the president looked to Section 338 of the Tariff Act of 1930 for the authority to impose tariffs on a country deemed to be discriminating against U.S. products.
He signed an executive order July 20 to impose 50 per cent tariffs on goods such as hockey sticks, honey, cement and wine. The affected products account for about five per cent of Canadian exports to the U.S., and unlike previous tariffs, do not include exemptions for products covered by the CUSMA deal.
The U.S. side said it was responding to a collection of irritants that include provincial bans on American alcohol, lack of access for U.S. dairy in Canada’s supply management system and Canadian quotas for tariff-free U.S. auto imports.
Trade fight enters new phase
The two countries have been locked in a tit-for-tat trade battle since Trump took office. Canada imposed counter-tariffs in early 2025 in response to American tariffs on steel, aluminum and autos. Carney later rolled back many of the countermeasures.
The auto quotas and the booze bans, which are in place in all provinces except Alberta and Saskatchewan, were part of that retaliation.
In the negotiations Canada is also looking for relief on existing U.S. tariffs on metals, autos and softwood lumber — a long-standing sore spot in trade relations between the two countries. The U.S. maintains Canadian lumber receives unfair government subsidies.
Calls grow for trade agreement
Arnold Viersen, a Conservative natural resources critic, said tariffs and mill closures are causing distress in lumber towns.
“When a mill closes, the consequences extend far beyond the individual workers who lose their jobs. Local businesses suffer, families leave, municipal revenues decline and communities risk becoming ghost towns,” he said in a statement on Tuesday.
He called on the government to “keep its promise” and negotiate a deal with the U.S. that’s good for Canadian workers.
The U.S. Chamber of Commerce urged both sides to keep working toward a deal on Tuesday.
“A deal that at once significantly reduces U.S. Section 232 tariffs on imported Canadian steel, aluminum, lumber and auto components, returns U.S. wine and spirits to Canadian shelves, enhances Canadian market access for U.S. dairy producers and addresses Canadian retaliatory tariffs would be a boon to U.S. consumers, producers, farmers and manufacturers,” said Neil Herrington, the Chamber’s senior vice-president for the Americas.
Bea Bruske, Canadian Labour Congress president, said Tuesday that staying strong during tense negotiations means being unafraid to walk away from a bad deal.
“Canada must be prepared to hold firm on our interests and our red lines, while also having a clear plan to support workers and communities if tariffs come into effect,” she said in a statement.
This report by The Canadian Press was first published Aug. 18, 2026.
— With files from David Baxter in Ottawa and Kelly Geraldine Malone in Washington