Barry Ellsworth
19 August 2026•Update: 19 August 2026
Canadian Prime Minister Mark Carney spoke by phone Tuesday with US President Donald Trump to try to hammer out a deal to avoid a 50% tariff on C$30 billion ($22 billion) worth of Canadian goods.
Trump took Carney’s call, and according to the prime minister’s office, the two spoke on the “ongoing negotiations.”
The two leaders had also spoken Monday after their representatives held discussions but with no deal reached. Negotiations have been ongoing for weeks.
A sticking point is which tariffs would apply to Canadian autos destined for the US, CBC News learned from an unidentified source who was not given permission to address the talks.
Trump invoked Section 338 of the Tariff Act of 1930 on July 20 to levy a 50% ad valorem duty on specific Canadian imports effective Aug. 19.
He said he would impose a broad range of tariffs on Canada, citing Canada's discriminatory treatment of US dairy, automobiles and alcoholic beverages when he kicked off his trade war with his northern neighbor last year.
Canadian Trade Minister Dominic LeBlanc is trying to wrangle as much from the US side as he can, including scrapping the Section 338 tariffs as well as on some industrial products like steel, aluminum, autos and lumber, CBC News reported.
On their side, the US wants an end to the Canadian boycott of US liquor and the products put back on Canadian shelves. The boycott has deeply affected US alcohol producers.
The tariffs were poised to go into effect after midnight Wednesday, but Trump decided late Tuesday to pause them for a three-day period.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” he said on his Truth Social platform.
