{"id":5634,"date":"2026-08-20T12:14:58","date_gmt":"2026-08-20T12:14:58","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=5634"},"modified":"2026-08-20T12:14:58","modified_gmt":"2026-08-20T12:14:58","slug":"trumps-canada-tariff-threat-produces-a-deal-with-no-public-terms","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=5634","title":{"rendered":"Trump\u2019s Canada tariff threat produces a deal with no public terms"},"content":{"rendered":"
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President Donald Trump said the agreement was \u201cvery fair\u201d to both sides and predicted U.S. farmers and manufacturers would benefit. The tariffs on about $20 billion worth of Canadian imports have been postponed until 12:01 a.m. Saturday.<\/p>\n

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The senior Canadian official said the emerging agreement would provide greater certainty, protect Canada\u2019s dairy sector and jobs threatened by the new tariffs, and preserve what Ottawa considers favorable trade terms with the United States.<\/p>\n

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Prime Minister Mark Carney asked provincial premiers during a briefing to return U.S. alcohol to store shelves, Nova Scotia Premier Tim Houston said, a step aimed at addressing one of the Trump administration\u2019s key trade complaints. Houston and two other premiers voiced support for the direction of the talks, though Houston said whether Canadians would actually buy U.S. alcohol again \u201cis a whole other discussion.\u201d<\/p>\n

The senior official spoke on condition of anonymity because they were not authorized to discuss the negotiations publicly before an agreement is finalized.<\/p>\n

Here\u2019s what to know:<\/p>\n

Trump\u2019s tariff threat would hit 5% of Canadian exports<\/h4>\n

Last month, Trump invoked a never-before-used legal authority, dating back to the Great Depression, to announce that the United States would slap 50% tariffs on $20 billion, or about 5%, of Canadian exports to the United States, ranging from hockey sticks to tongue depressors.<\/p>\n

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Trump claimed that Canada discriminates against American exports of autos, alcohol and cheese. The U.S. president is also furious that Canada and China were the only countries that punched back with retaliatory tariffs of their own when he slapped levies on their products.<\/p>\n

Canada\u2019s dairy market has been a persistent irritant<\/h4>\n

While details of the agreement emerging Wednesday remain vague, Trump claimed Canada had agreed to end tariffs on U.S. agricultural products. \u201cThe tariffs will be non-existent for our farmers. Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated. Down to zero,\u201d he said.<\/p>\n

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Canada currently allows a set amount of dairy imports at low tariffs. Once imports exceed that limit, much higher tariffs apply. The U.S. says Canada\u2019s \u201csupply management\u2033 system makes it harder for American dairy producers to get full access to the Canadian market.<\/p>\n

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Dominic LeBlanc, the minister responsible for Canada-U.S. trade, told reporters in Washington that Canada\u2019s \u201cagriculture sector will be well protected and we have maintained our tough line.\u201d<\/p>\n

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The senior Canadian official was even more explicit, saying supply management was \u201cnot on the table\u201d and Canada\u2019s dairy system would remain protected.<\/p>\n

That leaves another key question unresolved: how Canada can preserve supply management while giving U.S. farmers the additional access Trump says they will get.<\/p>\n

What does Canada get?<\/h4>\n

Canada has not publicly detailed what tariff relief Washington has offered.<\/p>\n

But the senior Canadian official said the emerging agreement would avert the new 50% tariffs, protect a significant number of jobs and preserve Canada\u2019s favorable access to the U.S. market.<\/p>\n

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The official also said the agreement would allow Canada to focus more on its domestic economic agenda, including infrastructure projects, attracting foreign investment and diversifying exports beyond the United States.<\/p>\n

Read more AI is becoming a financial engineering business<\/a><\/p>\n

Provincial leaders also signaled that a trade agreement would not mean returning to the previous Canada-U.S. economic relationship. Saskatchewan Premier Scott Moe said \u201cthe old status quo is not possible,\u201d while British Columbia Premier David Eby said, agreement or not, \u201cwe will not go back to the way things were before.\u201d<\/p>\n

Trump raised the pros<\/h4>\n

pect of reviving Keystone XL<\/h4>\n

In announcing the tariff pause, Trump said the long-canceled Keystone XL pipeline \u201cmay be awoken from the grave,\u201d though he did not say it was part of the agreement. The project, designed to carry Canadian crude to U.S. refineries, was rejected by Barack Obama, revived by Trump and canceled again by Joe Biden.<\/p>\n

Carney had already raised reviving Keystone XL with Trump at the White House in October 2025, and Trump was receptive, according to a Canadian government official familiar with the discussion. A revival would align with a longstanding Canadian goal rather than amount to a new U.S. concession.<\/p>\n

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Both sides wrangle over American alcohol imports<\/h4>\n

Eight of Canada\u2019s 10 provinces restrict or ban U.S. alcohol \u2014 measures imposed in retaliation for Trump\u2019s previous tariffs on a number of Canadian goods last year and amid anger over his repeated talk of making Canada the 51st U.S. state. The Distilled Spirits Council says U.S. spirits exports to Canada have fallen more than 70%.<\/p>\n

Ontario, Canada\u2019s most populous province, is especially important. Its government-run LCBO, one of the world\u2019s largest alcohol purchasers, sold nearly $1 billion Canadian dollars ($723 million) in U.S. products annually before pulling them from shelves.<\/p>\n

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The White House says the emerging deal includes a Canadian commitment to address the restrictions. But Carney cannot order provinces to restore sales.<\/p>\n

The backlash extends beyond liquor stores, with Canadian travel to the United States falling sharply. Even if U.S. alcohol returns, sales could take time to recover.<\/p>\n

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An agreement could clear the way for a broader trade deal<\/h4>\n

The U.S. is\u00a0renegotiating a North American trade pact\u00a0\u2014 the US-Mexico-Canada Agreement \u2014 that Trump strong-armed America\u2019s neighbors into accepting in his first term. The U.S. has begun formal USMCA negotiations with Mexico but not with Canada.<\/p>\n

The senior Canadian official said resolving the immediate tariff dispute would provide a path toward broader USMCA negotiations.<\/p>\n

If the threat of 50% tariffs is cleared, it \u201cshould help pave the way for formal U.S.-Canada negotiations,\u201d said Wendy Cutler, a former U.S. trade negotiator who is now senior vice president at the Asia Society Policy Institute.<\/p>\n

Both countries had incentives to head off an escalation in trade tensions.<\/p>\n

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Nearly 72% of Canada\u2019s goods exports last year went to the United States. And the Trump administration might be wary of imposing a hefty new tariff \u2014 paid by U.S. importers who try to pass along the cost to consumers via higher prices \u2014 ahead of November\u2019s midterm elections. American voters are already frustrated with the high cost of living.<\/p>\n

Read more \u2018Buyers aren\u2019t yet opening their wallets\u2019: AI-generated assets are flooding marketplaces, but consumers are snubbing them for human-made products<\/a><\/p>\n

___<\/p>\n

Gillies reported from Toronto.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

President Donald Trump said the agreement was \u201cvery fair\u201d to both sides and predicted U.S. farmers and manufacturers<\/p>\n","protected":false},"author":1,"featured_media":43,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nTrump\u2019s Canada tariff threat produces a deal with no public terms - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=5634\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s Canada tariff threat produces a deal with no public terms - 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