Canadian Prime Minister Mark Carney and U.S. President Donald Trump will speak by phone Tuesday night to avert new U.S. tariffs on Canadian goods [1, 2].
The conversation comes as a final attempt to reach a deal before a midnight deadline. Failure to agree could disrupt trade for billions of dollars in imports and impact economic stability in both nations.
The two leaders are scheduled to talk on Tuesday, Aug. 18, just before the deadline for the new tariffs [1, 2]. The proposed tariffs would take effect just after midnight on Aug. 19 [3].
Discrepancies exist regarding the total value of the targeted goods. Some reports indicate the tariffs would affect $30 billion in Canadian goods [1], while other sources place the figure at $20 billion [2, 5]. The threatened tariff rate is 50 percent [4].
Prime Minister Carney described the current state of the dialogue as high-stakes. "The trade negotiations are very intense and delicate," Carney said [4].
The phone call will connect the Canadian Prime Minister’s office in Ottawa with the White House in Washington, D.C. [1, 6]. Both leaders are seeking a resolution to avoid the immediate implementation of the duties, which would target a significant portion of the cross-border trade flow [1, 4].
Officials have not disclosed the specific terms being discussed to resolve the dispute. However, the urgency of the Tuesday night call suggests that previous negotiations have not yet resulted in a formal agreement to lift the threat [1, 2].
“"The trade negotiations are very intense and delicate."”
The looming 50 percent tariff represents a significant escalation in trade tensions between the two neighbors. Because the value of targeted goods ranges from $20 billion to $30 billion, the outcome of this call will likely determine whether Canada faces a sharp economic contraction in its export sector or if the U.S. administration uses the deadline as leverage to secure specific policy concessions.
