U.S., Canada try to bridge gaps over potential autos tariff cuts, Reuters sources say

By Paul Wiseman and Rob Gillies
The Associated Press
August 18, 2026
Category: Business & Politics
Region: Canada, United States

WASHINGTON — The US and Canada are negotiating in an effort to reach a truce on tariffs before a 12:01 a.m. Wednesday deadline set by US President Donald Trump. If no deal is reached, Trump has threatened to impose 50% tariffs on $20 billion worth of Canadian products. ″We are negotiating,” Canadian Prime Minister Mark Carney told reporters. …The two countries have wrangled for decades over trade, poking each other over sore spots like Canadian softwood lumber imports and US access to Canada’s protected dairy market. …Trump’s belligerent approach to dealing with Canada marks an extraordinary departure from the traditionally cooperative relationship between the two countries.  … Nearly 72% of Canadian goods exports last year went to the United States. And the Trump administration might be wary of imposing a hefty new tariff — paid by US importers who try to pass along the cost to consumers via higher prices — ahead of November’s midterm elections. 

Read More