US, Canada ‘very close’ to trade deal, Ottawa says, as details emerge
Canada’s top negotiator said both sides are making progress to avert new US tariffs and hope to reach a final agreement soon.
Dominic LeBlanc, Canadian minister responsible for Canada-US Trade, arrives for a meeting with United States Trade Representative Jamieson Greer in Washington, DC, US, Aug 20, 2026. (Photo: REUTERS/Tierney L. Cross)
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WASHINGTON: The United States and Canada are “very close” to a final trade deal, the top Canadian negotiator said Thursday (Aug 20) after talks with US President Donald Trump’s team.
Canada’s Dominic LeBlanc met for three hours in Washington with US Trade Representative Jamieson Greer, as both countries push to finalise an agreement to avert new tariffs threatened by Trump.
“We’re very close. We continue to make progress, and we’re going to stay here and do the work that’s necessary until we get to that point,” LeBlanc told reporters after leaving Greer’s office.
On Wednesday, both sides said they had moved close to a final agreement, a deal that could ease tensions following months of acrimony triggered by Trump’s punishing levies.
A new round of 50-per cent US tariffs was set to take effect on Canadian imports on Wednesday, but Trump said the day before that he was delaying enactment for 72 hours as a deal looked imminent.
Details of the prospective agreement remain unclear, but Prime Minister Mark Carney on Wednesday updated the leaders of Canada’s provinces and territories on the negotiations.
Carney made specific requests that the United States wanted implemented by Canada’s provinces, Nova Scotia Premier Tim Houston told reporters afterward.
Those include restocking US wine and liquor, which several provinces removed in retaliation for Trump’s tariffs on Canadian autos, steel, aluminum and lumber.
“The prime minister has asked us, as premiers, as provinces, to return the US alcohol to the shelves,” Houston said.
“It’s been an irritant … that has kind of really bothered the United States,” he added.
“EMOTIONALLY DRAINING”
The leader of the Atlantic coast province noted that even if US alcohol returned to Canadian stores, there is no guarantee people will buy it, citing deep-seated frustration over Trump’s treatment of Canada, including his annexation threats.
Beyond the provisions in any trade deal, there’s “the emotional impact of what Canadians have experienced,” Houston said.
“It has been emotionally draining.”
Quebec’s Premier Christine Frechette said her province had been hammered by Trump’s tariffs and she would decide on restocking US alcohol after studying the deal.
Wab Kinew, the left-wing premier of central Canada’s Manitoba province, said he was prepared to put alcohol back on the shelves, even if he thinks Canada “should fight.”
“I think America is weaker around the world today than it was a year ago,” Kinew said.
Trump’s “about to get slaughtered in the midterms,” he added. “I think we’ve got the upper hand.”
Carney also asked provinces to ensure they remove any language in procurement policies that “specifically excludes the United States,” Houston said.
Provinces could still favour Canadian suppliers, but cannot have direct language that precludes a US supplier from a project.
The US also likely has a range of demands of Canada’s federal government, with Canadian media reports pointing to commitments on defence procurement and critical mineral supplies.
The premiers declined to discuss what US tariff reductions are being discussed, but certain Canadian goods will still face duties when entering the United States, premiers said.
“The status quo we had two years ago was not possible,” said Saskatchewan’s conservative Premier Scott Moe, who was among those briefed by Carney on Wednesday.
He called the proposed deal “best-in-class,” with similar praise offered Nova Scotia’s Houston, who told reporters it was “the best possible outcome we can hope for in dealing with this administration.”
Source: AFP/fs
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