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Home » Global Trade & Economics » Canada Seeks to Avoid Looming 50% Tariffs

Canada Seeks to Avoid Looming 50% Tariffs

A SUPERMARKET DISPLAY OF TINNED TOMATOES AND SPAGETTI IS FESTOONED WITH SIGNS SAYING SHOP CANADIAN.

"Shop Canadian" signs on grocery store shelves in Victoria, Canada. Photographer: James MacDonald/Bloomberg

August 9, 2026
SupplyChainBrain

The government of Canada’s Prime Minister Mark Carney has offered the Trump administration a package of trade proposals in hopes of preventing the implementation of 50% tariffs on a range of imports into the U.S., due to take effect August 19, according to sources quoted by The New York Times.

Two people familiar with Canada’s stance in the talks with Washington say Canada is offering, among other concessions, to repeal a tariff on U.S.-made autos introduced in retaliation for a similar U.S. measure.

Speaking to reporters in Quebec on August 6, Prime Minister Carney ruled out doing deals just on specific products. “We’re not interested in a very targeted deal,” he said. “We’re interested in a more comprehensive deal, more global deal.”

Read More: Carney Accuses U.S. of Breaking USMCA with New Canada Tariffs

Meetings between the two countries — who are each major trading partners with the other — resumed last week in Washington, after months of hostile silence.

Canada has been vocal and active in pushing back against punitive tariffs, as well as Trump's repeated claimes he intends to make the country the "51st State." In an interview with the Council on Foreign Relations in May 2026, the U.S. Trade Representative Jamieson Greer said Canada was the only country apart from China that had retaliated against the U.S. over tariffs.

President Donald Trump in July signed an executive order which, if it comes into effect as planned on August 19, will cover a wide range of Canadian exports, including alcohol. It will not affect oil, natural gas, the fertilizer potash and other natural resources used by American industry.

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