Canada, US 'Far Apart' in Trade Talks Four Days Before 50% Section 338 Tariffs Hit $20B of Canadian Goods

Canadian Trade Minister Dominic LeBlanc told a government advisory group Saturday that Canada and the US remain significantly divided in talks meant to head off a fresh round of 50% Section 338 tariffs — covering roughly $20 billion of Canadian autos, alcohol, and dairy exports, including USMCA-qualifying goods — set to take effect at 12:01am EDT Wednesday, August 19. LeBlanc has met US Trade Representative Jamieson Greer four times in three weeks (most recently Thursday, August 13), with talks continuing through the weekend; sticking points include Canada's 25% retaliatory tariff on US vehicles, provincial restrictions on American alcohol sales, and dairy quota arrangements, while Canada is separately pushing for relief from existing US steel and aluminum tariffs. Canadian Chamber of Commerce CEO Candace Laing said both sides are exploring an interim agreement that would bundle the new threat together with tariffs already in place. The standoff is the latest flashpoint in the broader 2026 tariff cycle — alongside the July 24 Section 122/Section 301 transition — that continues to weigh on the US effective tariff rate and cross-border trade volumes.