US and Canada inch toward trade deal as tariff deadline looms

US and Canadian trade negotiators have been locked in talks for three consecutive days in Washington, and the word coming out of both camps is cautiously optimistic. The goal: finalize a deal before 50% tariffs on roughly $20B worth of Canadian goods kick in at 12:01 a.m. EDT on Saturday. President Trump originally set the tariff deadline for Wednesday, August 21, 2026, then pushed it to Saturday after negotiators signaled real headway. What’s on the table The proposed framework centers on tariff relief for some of Canada’s most economically significant exports. US tariffs on Canadian vehicles would drop from 25% to 15% under the emerging deal. Steel and aluminum duties, currently at punishing levels, would be halved to 25%. In return, Canada is offering concessions on market access issues that have irritated American producers for years. Provincial liquor stores would restore sales of US alcohol, and Ottawa would open the door wider for American dairy products. Provincial procurement policies, long a sore spot for US companies trying to bid on Canadian government contracts, are also reportedly part of the package. The $20B in Canadian goods facing the 50% tariff threat represents ...