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Canada weighs interim U.S. trade concessions ahead of Aug. 19 50% tariffs
Developing
Ontario Premier Doug Ford has repeatedly said American alcohol will stay out of provincial stores until a deal is struck, and Ottawa has told Washington that lumber tariffs must be resolved to persuade B.C. to relent. When negotiating with the White House, Canada should ensure it's in the strongest position possible, Conservative MP Michelle Rempel Garner said Tuesday.
Graeme Gordon , The Hub ‘s senior reporter, noted the toll is already measurable: “The Bank of Canada projects GDP will finish 2026 roughly 1.5 percent lower than its pre-tariff trajectory, with about half the shortfall from reduced potential output. Ian Lee, a professor at Carleton University’s Sprott School of Business, argued in a Hub interview that the escalating trade war could trigger a recession and a permanent reduction in Canadians’ standard of living, warning that without significant policy changes, Canada risks following countries such as Argentina into protectionism-driven decline. Poilievre said Canadians deserve a "good deal" that includes zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact and full exemption to Buy America rules on infrastructure projects at all levels of government. The Calgary MP also argued Prime Minister Mark Carney has been in office for more than a year, and has yet to secure a trade agreement with the Trump administration. "The person who needs to be held to account in the domestic capacity in Canada is Mark Carney," Rempel Garner said in Ottawa.
A sign is placed in front of the American whiskey section at a B.C. Liquor Store in Vancouver, B.C., Feb. 2, 2025. Ethan Cairns/The Canadian Press. A sign is placed in front of the American whiskey section at a B.C. Liquor Store in Vancouver, B.C., Feb. 2, 2025. Ethan Cairns/The Canadian Press. Ottawa is negotiating an interim trade deal with Washington that would lift provincial bans on American alcohol, drop retaliatory tariffs, and ease procurement and dairy restrictions in exchange for partial relief from U.S. Section 232 levies on steel and aluminum, with talks intensifying ahead of an Aug. 19 deadline for a new round of threatened American tariffs. The federal government frames the pac
Canada-U.S. Trade Minister Dominic LeBlanc and his American counterpart are aiming to present U.S. President Donald Trump a path to a potential trade deal as early as Monday, CBC News has learned. Sources who were recently briefed on the matter say the hope is the joint proposal can be presented to Trump at least a day before the president's latest tariff deadline. That timeline would give Trump the space to make a final decision before new 50 per cent levies on hundreds of Canadian imports are scheduled to take effect on Aug. 19. CBC News is not naming the sources as they weren't authorized to speak publicly. LeBlanc met with U.S. Trade Representative Jamieson Greer in Washington on Tuesday
What's confirmed
- Ontario Premier Doug Ford has repeatedly said American alcohol will stay out of provincial stores until a deal is struck, and Ottawa has told Washington that lumber tariffs must be resolved to persuade B.C.
- Graeme Gordon , The Hub ‘s senior reporter, noted the toll is already measurable: “The Bank of Canada projects GDP will finish 2026 roughly 1.5 percent lower than its pre-tariff trajectory, with about half the shortfall
What's still developing
- When negotiating with the White House, Canada should ensure it's in the strongest position possible, Conservative MP Michelle Rempel Garner said Tuesday.
Sources
- The Hub — Aug. 10 interim-deal reporting: alcohol shelves, counter-tariffs, dairy/procurement vs. Section 232 relief link
- The Globe and Mail — Aug. 10 tariff-countdown context; Aug. 19 50% threat; interim-deal reporting backdrop link
- CBC News — LeBlanc–Greer pitch-to-Trump continuum ahead of Aug. 19 (published Aug. 11 on Tuesday meeting) link