A new round of punishing U.S. tariffs is set to hit Canada just after midnight on Wednesday. U.S. President Donald Trump has threatened 50 per cent tariffs on US$20 billion worth of Canadian goods, including cement and hockey sticks. Those levies will come into force just after midnight on Aug. 19, unless negotiators can talk their way out of it. Mark Carney spoke with Trump Tuesday afternoon, just hours ahead of the midnight tariff deadline, according to the Prime Minister’s Office. Here’s what’s happening on Aug. 18, 2026: Carney, Trump speak hours before deadline Prime Minister Mark Carney and U.S. President Donald Trump spoke on Tuesday afternoon, hours ahead of the tariff deadline. According to the Prime Minister’s Office, the leaders “spoke again this afternoon about the ongoing negotiations.” No further details on the conversation were released. Tuesday’s conversation is the second time Carney and Trump have spoken in as many days. Stephanie Ha, Ottawa News Bureau journalist Two sides holding ‘edge of your seat’ negotiations’: former trade rep Ongoing negotiations between Canada and the United States are the “edge of your seat type,” according to one former U.S. trade representative. In an interview Tuesday with CTV News Channel, Kate Kalutkiewicz said the two sides are working hard to give Carney and Trump options before tonight’s deadline. Kalutkiewicz, who is now a trade lawyer at McLarty Associates in Washington, D.C., described the negotiations as intense. “This is the edge of your seat-type negotiations,” she said. Kalutkiewicz also said the two sides demands have been clear from the beginning, but at the end of the day, it all comes down to a point where “each side has gotten sufficiently enough to declare success.” Archie Niari, CTVNews.ca journalist Proposed tariffs ‘big step back’ for agri-food industry Michael Harvey, the executive director of the Canadian Agri-Food Trade Alliance (CAFTA), says the proposed tariffs would be a “big step back” for both the Canadian agri-food industry and the U.S. “Let’s look at what it means for America. It would be a big step back for American consumers, who would end up paying more on the products (and) would be a big step back for American farmers (and) producers, who would be paying more for their inputs,” he told CTV News Channel on Tuesday. Harvey says his work with the CAFTA revolves around advocating for freer trade in agri-food products in Canada and around the world, so consumers, producers and investors can make informed decisions based on economic realities, helping lower prices and improve quality. He says the alliance’s work makes “it better for everyone.” “Unfortunately, what we’re seeing right now is the White House taking a step back from an international freedom in markets that’s been very good for the American people,” he said. Kayla Thompson, CTVNews.ca journalist ‘The goal is limiting damage’: Trudeau staffer Brian Clow, the former deputy chief of staff to former prime minister Justin Trudeau, says a win for Carney against the proposed tariffs would look like it was “limiting damage.” ”If he can get the various sectoral tariffs lowered significantly (and) if he can avoid the threatened new tariffs without giving away much on our end, that’s a win for him," Clow told CTV News Channel on Tuesday. However, from his perspective, the matter is less about securing a win for Canada and more about surviving the damage being inflicted by Trump. “We’ve got to ride out the next two-and-a-half years of this president,” Clow said. “We’re never going to get to a great place on trade with this president. He likes his tariffs, so the goal is limiting damage.” Kayla Thompson, CTVNews.ca journalist ‘Contradictory signals’ from Carney, Trump CTV News political commentator Scott Reid says he saw “contradictory signals” emerge from Monday’s talks between Carney and Trump. Reid told CTV News Channel on Tuesday that Carney spoke openly “for the first time about the need to prepare for all eventualities,” which, Reid says, “really, in code, suggests that he’s contemplating a full schedule of counter-tariffs, should those new tariffs come into place from the United States.” Reid says such a move would result in an “escalation, not just on the American side, but on ours.” However, he added that what he believes is the most likely outcome is the U.S. proceeding with tariffs while Canada puts a couple of concessions on the table, such as adding U.S. alcohol back to store shelves. “I think the big question for the United States is: Are they even interested in securing an agreement, a deal, some kind of operational détente, or is Trump’s real objective just to flex? Is it just to demonstrate he’s in control? In which case, we’re chasing a phantom deal.“ Either way, Reid says, the hours between now and 12:01 a.m. Wednesday will be “the most important, most significant and most treacherous of Mark Carney’s political career” after a long political honeymoon in office. Kayla Thompson, CTVNews.ca journalist Tariffs ‘devastating’ to B.C. lumber industry The president and CEO of a lumber manufacturing company is speaking out about the effects of tariffs on the industry after CTV News learned Friday that U.S. proposals do not include any significant reduction in softwood lumber tariffs. John Brink, of the Brink Group of Companies, says “most of the lumber industry in Canada is paying up to 45.16 per cent in tariffs and duties combined. So the effect has been devastating.” The result, Brink says, is that about half of British Columbia’s lumber manufacturing capacity has been shut down. “There used to be 800 secondary manufacturers in British Columbia alone. We are now down to about 50. Not all due to tariffs and duties, but due to a combination of (factors).“ While Brink told CTV News Channel he believes Prime Minister Mark Carney is “able” and “capable” of doing the best he can to negotiate on behalf of the lumber industry, he believes the U.S. is “bound to go forward with it.” ”Then the scary thought, obviously, is what will happen on Wednesday, when another 100 different sectors will be affected by tariffs of some sort or another." Kayla Thompson, CTVNews.ca journalist Ex-adviser warns against dropping retaliatory tariffs Canada could weaken its negotiating position if it makes further concessions to the U.S., says Diamond Isinger, a former special adviser on Canada-U.S. relations in the Prime Minister’s Office. She says while the U.S. has made it clear that it does not want Canada to retaliate, dropping retaliatory tariffs could encourage the Trump administration to push for more and “may actually lead to a worse outcome overall for Canada.” “It’s a difficult strategic positioning to try to attain here,” says Isinger. She said historically, the U.S. administration and the president typically respond with a positive reaction when they see positions of strength from partners like Canada. “I still think that there is almost an equal chance of things working out versus not,” says Isinger, noting possible long-term damage to trust between the countries. Keys for Canada, according to Isinger, include engaging in good faith and adopting realistic positions. “Ultimately, the president has to see any kind of text from a possible deal, approve it, and agree to it, because he can be the X factor in what could otherwise be a potentially agreeable situation going off the rails.” Anam Khan, BNN Bloomberg, journalist ‘Promising’ last-minute trade talks Former senior White House trade adviser Kelly Ann Shaw says the fact trade negotiations are still underway with less than 24 hours before the deadline is “promising” for Canada. “I’ve been involved in a number of international trade negotiations and other negotiations throughout my career, and the hardest issues always get resolved at the very last moment,” Shaw told CTV News Channel on Tuesday. “So I don’t expect any sort of announcement until later today, possibly as late as midnight. But the fact the two parties are still at the table, I take as a good sign.“ Shaw added that Trump and Carney are likely discussing the toughest issues, including Section 232 tariffs, and deciding whether those concessions will be part of a CUSMA negotiation. “So steel, aluminum and automotive, those are the things that are going to require a decision by the president himself. Nobody else is going to make that decision, and so from the prime minister’s perspective, that’s probably a lot of what they’re discussing.” Kayla Thompson, CTVNews.ca journalist Items facing possible tariffs from U.S. The tariffs that could hit Canada are grouped by three executive orders loosely themed around motor vehicles, dairy and alcohol. But the content of each of Trump’s actual tariff lists are broader and not necessarily tied to those items. Here’s a broad look at what’s in the Trump administration’s sights as negotiations enter the eleventh hour. The Canadian Press. Read the full story here. Negotiators haggling over vehicle tariffs U.S. and Canadian officials are negotiating the potential reduction of American tariffs on Canadian vehicles, according to Reuters sources. Reuters reports that Canadian negotiators want to see vehicle tariffs dropped from the current 25 per cent to 15 per cent. But there is a sticking point between the two sides. The U.S. reportedly wants tariff reductions to be based on the amount of American content in Canada-made vehicles while Canadian negotiators want all North American parts to eligible for tariff reductions, including content from Canada and Mexico. The 25 per cent U.S. tariff on Canadian vehicles is well above the 15 per cent currently levied on vehicles from Japan, South Korea and the European Union, and 10 per cent on most British vehicles. Daniel Otis, CTVNews.ca journalist Petition to expel Hoekstra gains over 200,000 signatures A petition calling for the removal of Pete Hoekstra as U.S. ambassador to Canada is gaining traction as the trade negotiation deadline approaches. Launched by a Calgary woman on July 21, the petition to the House of Commons has garnered more than 225,000 signatures, with Ontario, British Columbia, Alberta and Quebec accounting for the majority. Signatories are calling on the federal government to “formally declare Pete Hoekstra persona non grata and request his removal as U.S. ambassador to Canada.” The petition also asks the government to “raise with the United States the pattern of conduct by Ambassador Hoekstra inconsistent with the Vienna Convention on Diplomatic Relations, and direct a parliamentary committee to review U.S. diplomatic interference in Canadian domestic affairs.” The petition is open for signatures until Nov. 18. Kayla Thompson, CTVNews.ca journalist U.S. Chamber of Commerce says ‘tariffs would damage both economies’ The U.S. Chamber of Commerce is urging Canada and the United States to “continue to engage in constructive dialogue” in order to reach a deal that avoids new tariffs. “The introduction of higher tariffs would damage both economies, drive up costs for U.S. families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the U.S.-Mexico-Canada Trade Agreement,” U.S. Chamber of Commerce senior vice-president for the Americas Neil Herrington said in a statement on Tuesday. Founded in 1912, the U.S. Chamber of Commerce is the world’s largest business advocacy group. “Conversely, a deal that at once significantly reduces… tariffs on imported Canadian steel, aluminum, lumber and auto components, returns U.S. wine and spirits to Canadian shelves, enhances Canadian market access for U.S. dairy producers and addresses Canadian retaliatory tariffs would be a boon to U.S. consumers, producers, farmers and manufacturers,” Herrington added. Daniel Otis, CTVNews.ca journalist Carney speaks with Trump Prime Minister Mark Carney spoke over the phone with U.S. President Donald Trump Monday afternoon as Canada tries to avoid the latest tariff threat. While the Prime Minister’s Office would not provide details of the call, it confirmed that the two leaders discussed the “ongoing trade negotiations.” On Monday, Carney described those negotiations as “very intense and delicate.” Daniel Otis, CTVNews.ca journalist Here’s everything that happened on Aug. 17, 2026: Job not done, says LeBlanc after meeting The meeting between Canada’s top negotiators and U.S. Trade Representative Jamieson Greer has wrapped up in Washington. Greer responded “no comment” on his way out as reporters shouted questions. When asked for a few words in French, he said, “bonne journée, Radio-Canada.” Canada-U.S. Trade Minister Dominic LeBlanc, who came out shortly after, said “we’re going to continue working. Our job is not yet done.” He then got into a vehicle and left. Luca Caruso-Moro, CTVNews.ca journalist Carney will speak with Trump, he says Speaking to reporters at an announcement in St. John’s, Prime Minister Mark Carney says he expects to speak with Trump ahead of Wednesday’s tariff deadline. Asked what a good deal for Canada looks like, Carney would not elaborate or provide specifics. “We’ll have opportunities over the next 48 hours to discuss in more detail as the negotiations go forward, and I think that’s the best forum,” he said. Stephanie Ha, Ottawa News Bureau journalist Canada ‘used as a punching bag’ Shuvaloy Majumdar, the Conservative critic for Canada-U.S. relations, said Ottawa’s political class is united across party lines when it comes to securing a trade deal with an “often unpredictable administration in Washington.” “We have grown tired of seeing our country used as a punching bag. Yet we share a common hope that Prime Minister Carney will deliver a genuine win at the negotiating table,” reads a statement released Monday morning. “Our negotiators have our full support in securing an agreement that lifts the tariffs and duties now weighing on our steel, aluminum, lumber and automotive industries,” which he said affects the livelihoods of 2.6 million Canadians. Luca Caruso-Moro, CTVNews.ca journalist How was your birthday, Greer? U.S. Trade Representative Jamieson Greer just passed CTV News cameras positioned at the Department of Commerce in Washington. He did not respond to questions on how trade talks are going with Canada. He was also asked “how was your birthday?” to which he made a so-so gesture. Greer celebrated his birthday yesterday, the same day he took a virtual meeting with Canada-U.S. Trade Minister Dominic LeBlanc. Luca Caruso-Moro, CTVNews.ca journalist Talks today CTV News has received word of more high-level trade talks in Washington this afternoon. Canada-U.S. Trade Minister Dominic LeBlanc and Chief Negotiator Janice Charrette will meet with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick at the Department of Commerce at 1 p.m. ET, according to LeBlanc’s office. Luca Caruso-Moro, CTVNews.ca journalist The ‘gap’ between Canada and U.S. There remains a “gap” between Canadian and U.S. negotiators, according to Flavio Volpe, a member of Team Canada’s group of insider advisers. He predicted talks may continue to the deadline later this week and noted high-level meetings that took place on Sunday are “not typical.” Volpe is also president of the Automotive Parts Manufacturers’ Association. He said Canada’s auto sector could see real losses in the long term if Canada cannot secure an auto tariff rate below industry-wide six per cent profit margins. Under the current tariff schedule, North American auto manufacturers are absorbing an effective tariff rate of at least 12.5 per cent, Volpe said. But, at “10, 15 per cent, especially if it’s baked in, especially if it’s long term, those companies will give up,” he told CTV News Channel. “You won’t see them close doors tomorrow, but you’ll see a similar situation to what we see in Brampton right now.” Last week, the prominent union Unifor said Stellantis is considering closing and selling its Brampton, Ont., assembly plant, which has been idled since 2023. Luca Caruso-Moro, CTVNews.ca journalist Ontario is ‘ready’: Ford Ontario Premier Doug Ford says his province is prepared for “any and every scenario.” ”This is why I have been pushing so hard for a united Team Canada response to this attack on Canadian workers, on Canadian sovereignty, Canadian communities. We need to stick together," Ford said in an address to the Association of Municipalities of Ontario in Ottawa. The Canadian Press U.S. senator: Canada’s ‘wake-up call’ U.S. Sen. Chuck Grassley of Iowa said Trump’s threat should serve as a “wake-up call to Canada to make some changes.” “I think the president is probably using them as a lever,” Grassley said Friday in an interview with The Canadian Press at the Iowa State Fair in Des Moines. While the senior Republican has been a key backer of Trump’s agenda on Capitol Hill, he also has continued to voice his support for free trade despite the president’s growing tariff regimen. Grassley said there’s nothing wrong with Canada and the United States having tough negotiations, but added, “These negotiations cannot be used as a way of destroying” the trilateral trade agreement known as CUSMA. The Canadian Press. Read the full story here. Greer’s birthday meeting Canada-U.S. Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer met on Sunday, days ahead of the latest tariff threat from the American president. LeBlanc and Canada’s chief trade negotiator, Janice Charette, spent the weekend in Washington, D.C., after meetings last week. A short statement on Sunday evening from a spokesperson for LeBlanc said the one-hour meeting, which was virtual, involved LeBlanc, Greer and Charette and was “constructive.” “They took stock of the work that has been done by their respective negotiating teams, and discussions are continuing,” the spokesperson said. The meeting took place virtually because Sunday was Greer’s birthday. It marked the fifth meeting between the two since Trump’s tariff threat. The Canadian Press Que. premier: Don’t drop supply management Quebec Premier Christine Fréchette met with representatives from the province’s agricultural sector Friday, wrapping up two days of emergency meetings as the government prepares for potential impacts of U.S. tariffs. Fréchette said the federal government must uphold Canada’s supply management system, which controls the production and pricing of dairy, poultry and eggs. She said Quebec’s dairy sector could be most affected by tariffs. Quebec accounts for 37 per cent of Canada’s dairy production, with nearly 4,000 farms and tens of thousands of jobs in the industry, Fréchette said. “We need to make sure that the federal government will not put forward the idea of modifying the supply management for the dairy sector,” Fréchette said Friday. “Quebec has been, so far, the most impacted province when it comes to the impact of the tariffs. Many sectors have lost a lot of jobs, thousands of jobs, and therefore, it is even more important to preserve the supply management mechanism for the agriculture sector.” Robin Della Corte, CTVNewsMontreal.ca digital reporter
