Mark Carney nears trade pact with US as Trump pauses $20.2B tariff threat

Canada and the US are inching toward a bilateral trade deal after President Donald Trump paused a planned 50% tariff on roughly $20.2 billion worth of Canadian exports. The pause, announced on August 19, gives negotiators until August 22 to finalize the agreement. Canadian Prime Minister Mark Carney is now trying to sell his country on a deal that would keep some US tariffs in place but reduce others meaningfully, framing the arrangement as the price of long-term economic stability. It’s a tough pitch in a country where polls suggest voters aren’t eager to make concessions to Washington. What’s on the table The tentative deal reportedly includes a cut in US tariffs on steel and aluminum from 50% down to 25%. Auto tariffs on non-US content would drop from 25% to 15%. The exports under the tariff threat include electronics, machinery, furniture, and dairy products. Negotiations have been led by Canadian Trade Minister Dominic LeBlanc and US Trade Representative Jamieson Greer, with talks centered on the sectors that generate the most friction: autos, steel, aluminum, dairy, and alcohol distribution. Carney briefed Canadian premiers on August 19 as talks continued, signaling that the ...